Will IRS recapture the tax credit for alternative-fuel vehicles sold early?

Your second link is about the old tax credit for hybrids. That did have a keep for 3 year limit.

The credit for plug ins doesn't have the 3 year language.

 

Many state incentives seem to have the required length (30-36mo) to keep the car to claim the full amount. As @Trollbait pointed out, the current PHEV and BEV tax credit code mentions no such requirement.

 

...seems like 3-year hold is reasonable requirement though.

 

It is, but was left off for this incentive for whatever reason.

 

So much free advice ... so little understanding of the rules

Here's the law ... & no more need to think about recapture

(bold - my emphesis)
26 CFR § 1.30-1 - Definition of qualified electric vehicle and recapture of credit for qualified electric vehicle. | CFR | US Law | LII / Legal Information Institute
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As far as I can tell, the recapture rule only applies to IRC 30C which is the old hybrid credit. It does not say anything about current plug-in-hybrid and BEV credit which is IRC30D.

 

I am not a CPA and don't know the exact meaning of the language in the tax code. The current tax credit law that covers the plug-in-hybrid is IRS code 30D and uses the form 8936. From the IRS document, it is clear that "Recapture of Credit" is possible, but its description is vague.

see Instructions for Form 8936 (01/2021) | Internal Revenue Service under Recapture of Credit. It reads:

Recapture of Credit
If the vehicle no longer qualifies for the credit, you may have to recapture part or all of the credit. For details, see section 30D(f)(5).​

The section 30D(f)(5) can be found here, 26 U.S. Code § 30D - New qualified plug-in electric drive motor vehicles | U.S. Code | US Law | LII / Legal Information Institute
The law states:
(5) Recapture

The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.​

I am not sure what it means by "any property which ceases to be property eligible for such credit". I guess under the discretion of the IRS, they can demand Recapture of Credit if they think the vehicle sold is no longer eligible for such credit. The best course of action if that happens would be to consult a tax lawyer.