EV tax credit

[schirallicpa]

Client purchased an EV earlier this year - new - and is eligible for the tax credit.  However, he wants to upgrade now and get a bigger, nicer EV.  He's trading in the first on the second.  Can he take both credits?

[Lee B]

Wow, if he upgrades 3 times before the end of the year, he could generate $30,000 in tax credits

[Medlin Software, Dennis]

No federal restriction preventing buying multiple eligible vehicles. MUST meet eligibility income level, and have enough liability for each credit (cannot carry over).

States may have a hold period. CA does.

If the vehicle gets resold from an eligible retailer, the buyer of the used vehicle may be eligible for a rebate too.

The used cr market is still wonky. But not as wonky as a year or so ago. It could be the credit will offset most or all of the depreciation on the first buy.