we got the $4500 tax credit and $1xxx NY state instant rebate, How long do we need to keep the car before selling/trade-in without penalty? I saw from the cleanvehiclerebate faqs: Q: If you have received a rebate, can you sell or trade in your vehicle before 30 months? A: If a vehicle is traded in before 30 months, the customer must contact the Administrator. We got our 2020 1 month before Toyota announced the production of RAV4 prime . 2020 prime is nice but we really want Rav4 prime SUV. We have owned the 2020 for 16 months now. Should we wait for another 14 months?
Your federal tax credit does not have a period you must keep the car to claim the full credit. Here is the IRS site for detail: Plug In Electric Vehicle Credit IRC 30 and IRC 30D | Internal Revenue Service "Resale" in the stipulation is buying a car to resale as a new car to prevent a dealer to take the tax credit. A consumer buying a car and using the car for 16 mo and selling a used car is not a "resale". Read this thread for more detailed discussion: Federal $4502 tax credit - what is consider resale? | PriusChat However, your state, like many other, incentives does require you to keep the car for a longer period. NY seems to be 30 months. Ours is 36 mos. If you sell or trade your car before the required period, you may have to return the state incentive.
You'll likely be on the hook for that NY rebate amount if you trade in now. Honestly, you are better off waiting for a Rav4 Prime even if that isn't the case. First year models always have a higher chance of having issues. Then there is a chance of discounts on the car later. Right now, the best you will likely find is MSRP. Some dealers have mark ups on the car now.
I've sold my 2018 PP after around 12 months to get the 2020 PP. I don't think there should be any issues.
It is doubtful you will get a Rav4 Prime in 2021. An order from four months ago was scheduled for January in our area. The buyer was told its likely in December 2021 and Toyota corporate is not accepting new orders. Likely due to covid slowdowns in Japan plus a current semiconductor shortage.
OP, is the FAQ from the state of NY or CA? You use the rules from where you applied for the rebate. See below. More info for NY residents: Are there requirements for how long I need to keep the car? Yes. Car purchases require an ownership period of at least 36 months. Car leases require an original lease term of at least 36 months. What are the repercussions of violating the 36-month ownership and lease requirement? NYSERDA will enforce the 36-month ownership and lease requirement. NYSERDA may seek reimbursement for a portion of the original rebate amount if the requirement is violated. If you are in this situation, contact the Drive Clean Rebate staff to resolve your 36-month ownership requirement using the contact information at the bottom of this page. Consumer FAQ - NYSERDA
Btw Is there a form to print out for the $4,502 credit? I had to fill out like 4/5 papers just for the Pennsylvania $500 DEPA rebate.. including copies of receipts etc sorry for the newb question, but it’s my first time doing something like this
When you file your federal taxes with the IRS include form: About Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit | Internal Revenue Service Whatever is in the last line, goes into 1040 Schedule C line 6 https://www.irs.gov/pub/irs-pdf/f1040s3.pdf
As said above. Use form 8936 on your Fed income tax return for the year you purchased the vehicle. If you use Tax software like Turbo Tax, this form is available online and will fill out appropriate number in your tax forms by answering a few questions about the car you purchased. Historically, it takes while for IRS to update this form for the current tax year, so you may have to wait until the form is updated by IRS. Form 8936 for 2020 filing is not yet available at linked IRS site yet.
This is the rule for NY state instant rebate... have to keep for 36 months, or give a few hundred dollars back. Thanks.
XLE $31000 - $4000 factory rebate - $1100 NYS - $4500 Federal - $21000 (2020 XLE trade-in) - $400 dealer discount. =0 You pay less than $1k tax only. Good deal even you need to pay a portion of few hundred dollars back to NYS. 2021 has both carplay and Android Auto.. then wait for 2022 RAV4 prime when the supply goes up. Thanks.
When I looked a couple of weeks ago I didn't see any RAV Primes available north of Boston. Also I read an article that indicated that they were in short supply due to lack of battery availability.
