It's official, tax bill includes credit for plug in electric vehicles

so If I understand correctly, the original owner (1st owner) even if they sold their car back to dealership one can still claim his tax credit on the car that one already sold?

 

Yes, that's correct. Also, for a leased new PHEV and BEV vehicles, leasing company gets the tax credit not the lessee. In most part, Prime is cheaper buying new than leasing. If you live in NE, with Toyota rebate of $3250 and deep dealer discount (usually $1K-$2K) and $4500 federal tax credit, you can purchase a brand new Prime for the price of Corolla.

 

Probably so, unless they get snagged by the IRS requirement that the car not be purchased for the purpose of resale.

And the dealership will factor that in when making a trade-in offer price to buy it back, knowing full well that a used Prime without tax credit will require a very substantial markdown. Buyers will be favoring the new units still eligible for the credit. Thus, the original buyer will not make an after-credit profit on the purchase-and-resale of that Prime.

 

Unfortunately, you have to be the first owner, not a used vehicle to qualify.

 

At least you know it wasn't a flood car. It would have shorted out! lol

 

I can't find the TAX form on the IRS website. Form 8936 states those purchased in 2017. what about the 2017 prime purchased in 2018?
where is the tax form?

 

The IRC 30D new plug-in irs document I have read, but, bought prime in 2018 and it is a 2017 new.
which IRS form do I use?

 

I bought my Gen 2 after all the tax rebates expired and then Toyota discounted the car over $3,000 right on the window sticker, I wonder if they will do the same thing after the tax incentives run out on the Prime.

 

That is the correct form; note it says 2018 in the upper right hand corner. Some tweaks were made, as a matter of fact, TurboTax did not have the proper updates until February (and the one in the link is the same one as printed in my TurboTax program).

 

You use the form year in which you place the car into service. It doesn't matter the model year, just have to be purchased new, never titled.

 

You use the form for the year the vehicle was placed in service.