Help…tax credit on 2021 prim

Federal rebate is applied at the dealership. They need to file the paperwork, but your on the hook if you don't qualify. Max price for the car is $25K and you need to make less than $75K adjusted gross for single filer. Good for $4K and may be used as a down payment. IRS will ding you and claw-back, if you don't qualify - but if you never file, no worries

 

LoL, dealerships charge you for filing the paperwork - why would they mind. It's usually classified in miscellaneous cost and fees. Chances are they're asking more that the Federal limitation, cap of $25K - so it doesn't qualify.
Got a few dealerships out here with used Rav4 Primes in inventory; asking way over the federal cut-off; for a few thousand more - you could buy a new one. If they sold it at MSRP.

 

I got this for my used 2019 Prime for 2023. There are some changes in 2024.

The price paid - including dealer surcharges and handling fees, not including taxes, title, and registration fees must be less than $25,000.

The dealer must file some paperwork with the IRS - in 2023 it was manual. In 2024, they can do it online at the IRS website.

You'll need to file form 8936, which has some limitations on your personal income (the credit is only available to those that make under a certain limit). This generates the 30% of the price paid or $4000 whichever is smaller - that goes onto 1040 Schedule 3. line whatever.

Used Clean Vehicle Credit | Internal Revenue Service (irs.gov)

 

I looked at quite a few Gen 4 Primes, and almost all of them were just above the 25K limit. Of course, this gives you a strong place to twist their arms on during dealer negotiations, and I think a lot of them would cave if push came to shove. You've gotta have the ability to walk out the door, and keep looking till you find one that suits your needs. Oh, and a dealer that doesn't mind doing the IRS paperwork.

In my case, the car had a couple (very minor) dings. Most dealers would probably have these fixed, which drives the price up. I'd rather have factory paint that doesn't chip, and can tolerate a small ding. It's not like it's going to make it more than a couple years until something happens anyway.

 

There's quite a few here in central Ca.
https://www.cars.com/shopping/results/?dealer_id=&keyword=&list_price_max=25000&list_price_min=&makes[]=toyota&maximum_distance=100&mileage_max=&models[]=toyota-prius_prime&monthly_payment=464&page_size=20&sort=best_match_desc&stock_type=all&year_max=&year_min=&zip=95817
The higher the mileage, the cheaper they are, especially newer high mileage cars. More than likely long distance commuters. Just need to verify maintenance records.

 

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