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Government incentives for foreign buyers

Discussion in 'Newbie Forum' started by Neal_gh, Sep 14, 2017.

  1. Neal_gh

    Neal_gh Junior Member

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    Hi all, I've been reading the thread for a while since I've always been interested in the hybrid world.

    I'm moving from Canada to California soon and will start working on my H1B visa. I'd like to know if I'm also eligible for the federal tax credit and California EV rebate program. I'm aware that the Cali rebate program ran out of budget for this year and I don't mind waiting a few months. All I'm concern is my eligibility.

    Thank you,
     
  2. Mark57

    Mark57 2021 Tesla Model 3 LR AWD

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    Welcome to the site. That's a good question and one a competent, qualified tax professional needs to answer. I'd dig in to the IRS.gov site to see what you can find.

    Me, guessing, if you have a US tax ID and "must" file a US tax return due to income in the US, I'd think you would meet the requirements to take the credit if you income supports it, but I'm not saying anything for sure, nor have I recently stayed ion a Holiday Inn Express.;)
     
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  3. Neal_gh

    Neal_gh Junior Member

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    Thank you Mark57
     
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  4. Elektroingenieur

    Elektroingenieur Senior Member

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    @Mark57's suggestion to get professional advice is the best answer, since there could be non-obvious considerations. For example, you wouldn’t want to buy the car, claim the U.S. tax credit, and then learn that receiving the credit has increased your foreign tax liability. (I have no idea if that could happen—and nothing here is accounting or legal advice.) Here are some links that you may find helpful:

    The California rebate (at this writing, $1,500) is limited to people with incomes under certain limits, and the vehicle must be kept registered in California for at least 30 consecutive months, among other requirements; you also have to be a California resident when you buy the vehicle. The Implementation Manual (PDF) explains all this in detail.

    For the Federal tax credit, see the IRS’s Plug-in Electric Drive Vehicle Credit at a Glance and About Form 8936 pages. (Form 8936 is used to claim the credit.) That page includes links to the instructions for the form and the notices from 2009 and 2012 explaining the credit. EPA’s FuelEconomy.gov page, by the way, says the amount is $4,502 for a 2017 Prius Prime, but it may decrease as qualifying vehicles are sold.

    Regarding income taxes generally, see IRS Pub. 519, U.S. Tax Guide for Aliens (PDF), and Pub. 17, Your Federal Income Tax for Individuals (PDF), both updated annually. You’ll probably have to pay California state tax, too; see the Franchise Tax Board’s website for more about that.
     
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  5. Neal_gh

    Neal_gh Junior Member

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    Thank you guys all. I ended up getting a regular Prius. So far I liked the car
     
  6. bisco

    bisco cookie crumbler

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    congrats! time to change your info, all the best!(y)