[TinyEV_PA]

I’m prob not the first one to run into this, but I have been having trouble getting dealerships to assure me that they are able to help with the fed tax credits. First with a BMW dealership and now with CarShop. This is new for them and there are things that they need to understand and actions they need to perform. Here are some resources. As I work through my purchase of this 500e I’ll share my experience in hope that it will help others.

Anybody successfully buy through a “participating” dealership and receive a proper report for IRS purposes?

IRS overview focused on buyer requirements…

Used Clean Vehicle Credit | Internal Revenue Service

If you buy a qualified used electric vehicle from a dealer for $25,000 or less, you may be eligible for a clean vehicle tax credit of up to $4,000.

www.irs.gov

IRS Dealer requirements…
Clean Vehicle Credit Seller or Dealer Requirements | Internal Revenue Service

Edit: Added amother link…

More IRS resources, FAQs ( there are several categories of FAQs on the left, click through them to find what you are looking for )

Topic A — Frequently Asked Questions About the Eligibility Rules for the New Clean Vehicle Credit | Internal Revenue Service

New Clean Vehicle Credit, Previously-Owned Clean Vehicle Credit and Credit For Qualified Commercial Clean Vehicles Frequently Asked Questions Topic A — Eligibility Rules for the New Clean Vehicle Credit

www.irs.gov

 

[TinyEV_PA]

After a some phone calls and a few emails it appears that the local CarShop dealer isn’t interested in helping me out with a federal rebate. The associate who is helping seems to be caught in the middle and his manager says they are not going to participate.

I told him that I’d like my deposit back. He’ll talk to his boss and get back to me 🤷.

Seems strange, but I guess it is to be expected in the early days of this new rebate.

 

[TinyEV_PA]

They are processing the refund of my deposit.

UPDATE: Last minute change. Corporate is reviewing 🤞

 

[Electric Tire Shredder]

I wonder if it would help to remind them that their home turf of PA (& NJ) plan to ban new gas cars in a few years, which will make all their smart customers want EVs well ahead of that, so they'll lose a lot of business if they don't start accommodating them.

 

[TinyEV_PA]

Edited: formatting and typos

So true LOL.

In this case the associate ( they don't have traditional car sales people, no commission ) hadn't been asked about this before. His manager wasn't really into dealing with it. Finally when we agreed it wasn't going to happen and we sought a refund of the deposit. At that point the Finance guy was willing to talk to me. He spend a good while explaining to me how this all worked. I politely suggested that there were a few more wrinkles and that I couldn't go forward until CarShop was willing to do the following.

A) Provide me with the required documentation/report/certificate ( excerpts from the IRS link below )

"Report Required Information
You must report clean vehicle credit information to buyers at the time of sale and later to the IRS.
Report Information to Buyers
Provide the following information to buyers at the time of sale:

• Seller/Dealer name and taxpayer ID number
• Buyer's name and taxpayer ID number
• Maximum credit allowable under IRC 30D for new vehicles or IRC 25E for previously owned vehicles
• Vehicle identification number (VIN), unless the vehicle is not assigned one
• Battery capacity
• Date of sale
• Sale price
• For new vehicles, verification that the buyer is the original user

Each report must include a declaration of accuracy signed by a representative of your business with binding authority. The declaration must read: "Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.”

B) Acknowledge that they are a "participating dealership" and would carry out their reporting duties to the IRS.

"Report Information to the IRS
Submit the same information to the IRS by January 15 of the year following the purchase. The first reports are due to the IRS by January 15, 2024. Check back for further guidance on how to submit these reports."

Source: Clean Vehicle Credit Seller or Dealer Requirements | Internal Revenue Service

I'm not upset with them. You may have noticed that the IRS doesn't even know how the dealerships will submit the required report. If it doesn't work out, I'll just look elsewhere 🤷‍♂️ I have purchased three cars from the company formerly named CarSense and now CarShop ( owned by Penske ) and I have had a great experience each time. This would be the first problem.

 

[Electric Tire Shredder]

Thanks for all the great info, but I got no rebate on mine & it was still a great value, considering that in over 6 years I've spent $0 on fuel or electricity*, $0 on oil, $0 on engine oil/air filters, $0 on smog checks, $0 on brakes....

I even replaced the 5-yr-old 12V battery for only $38, & the whole set of bald tires for only $300.

* Free plug in my apartment's garage, & 20+ free public chargers right on my normal 17-mile route.

 

[TinyEV_PA]

Excellent! Totally agree.

Right now the only way it fits into our plans is by getting this rebate.

 

[Typhoon320i]

A) Provide me with the required documentation/report/certificate ( excerpts from the IRS link below )

"Report Required Information
You must report clean vehicle credit information to buyers at the time of sale and later to the IRS.
Report Information to Buyers
Provide the following information to buyers at the time of sale:

• Seller/Dealer name and taxpayer ID number
• Buyer's name and taxpayer ID number
• Maximum credit allowable under IRC 30D for new vehicles or IRC 25E for previously owned vehicles
• Vehicle identification number (VIN), unless the vehicle is not assigned one
• Battery capacity
• Date of sale
• Sale price
• For new vehicles, verification that the buyer is the original user

Each report must include a declaration of accuracy signed by a representative of your business with binding authority. The declaration must read: "Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.”

B) Acknowledge that they are a "participating dealership" and would carry out their reporting duties to the IRS.

"Report Information to the IRS
Submit the same information to the IRS by January 15 of the year following the purchase. The first reports are due to the IRS by January 15, 2024. Check back for further guidance on how to submit these reports."

Source: Clean Vehicle Credit Seller or Dealer Requirements | Internal Revenue Service

I'm not upset with them. You may have noticed that the IRS doesn't even know how the dealerships will submit the required report. If it doesn't work out, I'll just look elsewhere 🤷‍♂️ I have purchased three cars from the company formerly named CarSense and now CarShop ( owned by Penske ) and I have had a great experience each time. This would be the first problem.

I read the basic list the IRS has on their website. I guess the only thing I'm not clear on is:

Required information includes: Maximum credit allowable under IRC 25E
I don't know what that is referring to . (Maximum credit is $4000 for used.?) Right?

I got the dealers name and tax ID number
I know mine
Sale date, and price, are on the bill of sale.
VIN is also on bill of sale.
Battery capacity - 24 Kw

Is there anything I'm missing? I figured I had all my ducks in a row.
The current 8936 form linked to at IRS website, is for the old tax rebate (last revised January 2022) this was before the IRA was passed. Not a relevant document as far as I can tell.

 

[TinyEV_PA]

Good question. According to their website there is a signed report they need to give the seller.

who knows? Im new to this whole thing.

 

[Typhoon320i]

I am at the IRS web page and looking at what you quoted. I will have to send this to my accountant and see what she makes of it.

 

[TinyEV_PA]

It is at this link...

Clean Vehicle Credit Seller or Dealer Requirements | Internal Revenue Service

Sellers of eligible electric vehicles can help their customers take advantage of clean vehicle credits by registering with the IRS and meeting reporting requirements.

www.irs.gov

The excerpt follows...

"Each report must include a declaration of accuracy signed by a representative of your business with binding authority. The declaration must read: "Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.”

Again, I'm no expert. I'm only going by why I'm reading on the IRS site.

 

[Typhoon320i]

this really only makes sense if the dealer gets a tax benefit, OR we were at the stage where you get the credit at the time of purchase. Then the dealer would jump through hoops, otherwise the sale might not happen. For you as a buyer to be required to collect this from a business could be like pulling teeth, with no benefit to them.

the title of the page, of your link, is below, which tells me it is not requirement for the buyer to collect this to get the tax benefit. I could be wrong.

Clean Vehicle Credit Seller or Dealer Requirements

Here is the link, where I got my info from. It seems more reasonable in it's requirements:

Used Clean Vehicle Credit | Internal Revenue Service

If you buy a qualified used electric vehicle from a dealer for $25,000 or less, you may be eligible for a clean vehicle tax credit of up to $4,000.

www.irs.gov

 

[TinyEV_PA]

I hear ya. I did see that. I posted that link in my initial post. Since two dealerships I have tried to work with are equally uninformed, I would say that there will be many people claiming the credit on their taxes without cooperation from the dealership.

Something else to consider. Next year it will supposedly be possible to get the rebate at the point of sale.

Your guess is as good as mine 🤷‍♂️

This is great BTW. I was hoping to hear from others. I appreciate your feedback.

 

[Typhoon320i]

I e-mailed my accountant to look at that link and see what she makes of it. I'll update the thread, if any insight.

 

[TinyEV_PA]

CarShop corporate sent me over fist draft of the EV tax credit purchase report/form. Looking it over now.

This purchase might actually happen!

 

[Typhoon320i]

Lets us know what information it has on it

 

[TinyEV_PA]

Absolutely! It has blanks for all the items from the second link in the orig post. I compared the two.

Excerpt from the page on IRS site…

Report Information to Buyers
Provide the following information to buyers at the time of sale:

• Seller/Dealer name and taxpayer ID number
• Buyer's name and taxpayer ID number
• Maximum credit allowable under IRC 30D for new vehicles or IRC 25E for previously owned vehicles
• Vehicle identification number (VIN), unless the vehicle is not assigned one
• Battery capacity
• Date of sale
• Sale price
• For new vehicles, verification that the buyer is the original user

Each report must include a declaration of accuracy signed by a representative of your business with binding authority. The declaration must read: "Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.”

 

[Typhoon320i]

So it's just that information on a sheet that they wrote up? Signed by who? the car salesman, general manager?

 

[TinyEV_PA]

Yes all that stuff with some formatting changes. Not sure who will sign it. It just has a place for “company representative”.

Unfortunately, the deal fell through so I won’t know until I buy one someplace else. I’ll check back here when/if that happens.