Dealer EV tax credit experience

[Monkey]

This is not correct. The dealership is required to fill out a form, supply it to the buyer, and file. The customer uses this information when they file, but don't send the form in.

Is this a state thing where you're at? Because I can assure you this is 100% not an IRS / federal requirement, nor is it a requirement for my state (Colorado). What form is this? Link, please. I've bought 9 vehicles that qualify, 6 for my company, 3 personally, since 2015 (EV and PHEV).

Yes, they must report information to buyers regarding the tax incentive eligibility. As you have outlined... There isn't anything there that isn't covered within the window sticker/ vehicle specifications and buyers order and/or purchase agreement.

Qualifying vehicle information to the IRS is required, but I have not seen anything from Ford, Tesla, etc.. where it is handled with the customer sale and paperwork or by individual dealers/ service centers. As I'm aware, Ford handles this on the corporate side along with issuing the origination packet. In fact, I think the IRS system is given the pertinent data when VINs are registered.

The only required IRS form is Form 8936 -- which is filled out and submitted with the purchaser's tax return. Tax prep software handles this form for you. Even the free online TaxAct or TurboTax does it. In the early days of the incentive, some dealerships were being helpful by giving customers an already filled out 8936 to help avoid confusion and give a warm fuzzy feeling. Perhaps some are still doing that?

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[Maquis]

Is this a state thing where you're at? Because I can assure you this is 100% not an IRS / federal requirement, nor is it a requirement for my state (Colorado). What form is this? Link, please. I've bought 9 vehicles that qualify, 6 for my company, 3 personally, since 2015 (EV and PHEV).

Yes, they must report information to buyers regarding the tax incentive eligibility. As you have outlined... There isn't anything there that isn't covered within the window sticker/ vehicle specifications and buyers order and/or purchase agreement.

Qualifying vehicle information to the IRS is required, but I have not seen anything from Ford, Tesla, etc.. where it is handled with the customer sale and paperwork or by individual dealers/ service centers. As I'm aware, Ford handles this on the corporate side along with issuing the origination packet. In fact, I think the IRS system is given the pertinent data when VINs are registered.

The only required IRS form is Form 8936 -- which is filled out and submitted with the purchaser's tax return. Tax prep software handles this form for you. Even the free online TaxAct or TurboTax does it. In the early days of the incentive, some dealerships were being helpful by giving customers an already filled out 8936 to help avoid confusion and give a warm fuzzy feeling. Perhaps some are still doing that?

The link to the IRS requirements was in the post you quoted, but you deleted that part.

 

[scottlanger]

The link to the IRS requirements was in the post you quoted, but you deleted that part.

I think I figured out, in the IRS document it says dealer needs to provide documentation to IRS and buyer for both the new and used programs, but later it says to receive IR25 which is the used buyer needs to submit said report. I didn't catch that detail and it does not say same thing for IR 30 which is new car credit. Looks like dealer was supposed to provide what they send to the IRS as well ( probably as protection to the buyer to make sure they actually submit) but I do not see where not having that document would jeopardize my credit, thanks for everyone help

 

[TaxmanHog]

This is why I was concerned, I had read that, sounds like lots of people in the same boat so probably okay I guess, glad to hear it appears to be widespread dealers are not providing this information.

Lazy business offices in many dealerships!

Don't fret over the paper, yes they should have given it to you, are you confident that your truck qualifies, do you have the window sticker showing the MSRP "AS BUILT" cost of the truck and that it's value is under the $80K {excluding delivery charge}?

 

[RickLightning]

The link to the IRS requirements was in the post you quoted, but you deleted that part.

Details, details.

 

[Monkey]

The link to the IRS requirements was in the post you quoted, but you deleted that part.

No. I acknowledged that part and said those requirements were all accounted for with the standardized info, window sticker and and purchase agreement. I requested the link to the IRS form he’s claiming the dealership is supposed to supply.

 

[TaxmanHog]

No. I acknowledged that part and said those requirements were all accounted for with the standardized info, window sticker and and purchase agreement. I requested the link to the IRS form he’s claiming the dealership is supposed to supply.

It's NOT an IRS form, just a general description of the data the manufacturer / dealer should provide to the IRS in data transmission formats and a letter head statement from the dealership, FOMOCO provided the dealers with recommended template that is integrated into their sales closing program, informed sales staff know what to do the rest should get educated or go bankrupt.

 

[Monkey]

It's NOT an IRS form, just a general description of the data the manufacturer / dealer should provide to the IRS in data transmission formats and a letter head statement from the dealership, FOMOCO provided the dealers with recommended template that is integrated into their sales closing program, informed sales staff know what to do the rest should get educated or go bankrupt.

Thank you for the confirmation. I know it's not an IRS form. I was responding to the other high and mighty poster who was saying there was a required form, asking him for a link to it. I suppose I said IRS form in my last post...

Anyhoo...

 

[RickLightning]

Thank you for the confirmation. I know it's not an IRS form. I was responding to the other high and mighty poster who was saying there was a required form, asking him for a link to it. I suppose I said IRS form in my last post...

Anyhoo...

As was stated, a form is supplied by Ford Motor Company, is in their system, via a link on step 5. The form has all the required info that the IRS specifies, which I also listed.

Here is a link to a copy of the form - https://www.f150lightningforum.com/forum/threads/fords-ev-tax-form.14474/post-300241

 

[TaxmanHog]

As was stated, a form is supplied by Ford Motor Company, is in their system, via a link on step 5. The form has all the required info that the IRS specifies, which I also listed.

Here is a link to a copy of the form - https://www.f150lightningforum.com/forum/threads/fords-ev-tax-form.14474/post-300241

Excellent reminder, I moved that thread into the:
[Reservations, Ordering, Pricing, Production, Delivery ] node and stuck it.

 

[Danface]

The following will be effective for sales 1/1/2024 and beyond.

Clean vehicle credits can help car buyers pay less at the dealership​

Taxpayers who buy a qualifying new or used clean vehicle may be able to transfer their tax credits to the dealer in exchange for a financial benefit – such as a lower cost – starting Jan. 1, 2024.

Benefits of transferring the credit
Taxpayers can now claim tax credits for new and used clean vehicles they buy during the tax year and, starting Jan. 1, 2024, can transfer that credit to the dealership. This means that the taxpayer who is buying the vehicle can exchange their credit for a financial benefit such as reduced final cost. The financial benefit is equal to the amount of the credit, whether in cash, a partial payment or a down payment.

New information about the clean vehicle credit
The IRS recently issued proposed regulations, Revenue Procedure 2023-33 and frequently asked questions that cover:

• How taxpayers can transfer clean vehicle credits to eligible dealers.
• How dealers can register with IRS Energy Credits Online to receive advance payments.
• How dealers can lose their registration if they don’t comply with the program's requirements.
• New details on the timing and submission of seller reports.
• Updated information for manufacturers on becoming qualified and how qualified manufacturers can submit monthly reports.

Dealers and sellers register by December 1
Dealers and sellers of clean vehicles should register their organizations immediately using the Energy Credits Online tool. The IRS strongly urges sellers of clean vehicles to register by Dec. 1, 2023, to receive advance payments starting Jan. 1, 2024.

For updated clean vehicle credit frequently asked questions related to new, previously owned and qualified commercial clean vehicles, see Fact Sheet 2023-22.

More information:
Clean Vehicle Credits webpage on IRS.gov

https://www.irs.gov/newsroom/clean-vehicle-credits-can-help-car-buyers-pay-less-at-the-dealership

I'm going to wait until after 1/1/2024 to actually purchase mine (if it gets here by then) because I had a windfall this year that will most likely just put me over the income limits (ouch but not really ). I'll ask the dealership if they're setup to do the rebate at purchase time, fingers crossed!

Heres' link I got from my tax guy:
https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

 

[Ishkatan]

My dealer would not give the tax credit at time of purchase (4/29/24), saying the Ford site was giving them too much trouble but they filled out and gave me a "Seller's Report for Section 30D Clean Vehicle Credit" and said they will file with the IRS site. I hope the IRS accepts the 30D as proof if the dealer failed to file on line with the IRS site. I do have an email out to my salesman asking to verify they did file but am waiting for a confirmation.
I also asked if they have loaner Tesla adapters for a trip I am planning, but the manager said they don't have such a program.

 

[RocketGhost]

My dealer would not give the tax credit at time of purchase (4/29/24), saying the Ford site was giving them too much trouble but they filled out and gave me a "Seller's Report for Section 30D Clean Vehicle Credit" and said they will file with the IRS site. I hope the IRS accepts the 30D as proof if the dealer failed to file on line with the IRS site. I do have an email out to my salesman asking to verify they did file but am waiting for a confirmation.
I also asked if they have loaner Tesla adapters for a trip I am planning, but the manager said they don't have such a program.

When the dealer reports the sale to the IRS the portal will generate IRS form 15400 which they are required to give you. It is confirmation that the vehicle qualifies for the credit and that the sale was reported with your name and SSN as the buyer.

Per IRS guidance, if the dealer does not report the sale using the IRS portal within three days of purchase, the vehicle is deemed ineligible for the tax credit. Neither you nor the dealer will be able to claim it. Whether the IRS will relax this rule remains to be seen. The IRS can be very strict, but it's possible that they will modify their guidance when tons of people realize next spring that they were screwed through no fault of their own by dealers not fulfilling their reporting requirement.

If the IRS sticks to its guns you have a pretty solid case against the dealer in a lawsuit.

 

[TaxmanHog]

Transitions to new processes often come with glitches and unforeseen road blocks, I haven't read anything yet regarding loosening of policy & procedure for TY24, but it's not unheard of to occur.

In the meantime, continue follow up with the dealer to see if they FIXED the problem with getting a report filed and received a system validated F15400. Should all that fail, retain your documents and file your claim for credit with your tax year 2024 filing next year, hopefully the system accepts the self report and doesn't buck your credit request, if it does, exercise all your appeals rights to secure the credit.

If enough claims come in with this process flaw, it will stimulate a compliance review project, the dealers failing to comply will bare the impact, you may experience inconvenience trying to right the incompetence of these dealerships.

 

[mags]

Transitions to new processes often come with glitches and unforeseen road blocks, I haven't read anything yet regarding loosening of policy & procedure for TY24, but it's not unheard of to occur.

In the meantime, continue follow up with the dealer to see if they FIXED the problem with getting a report filed and received a system validated F15400. Should all that fail, retain your documents and file your claim for credit with your tax year 2024 filing next year, hopefully the system accepts the self report and doesn't buck your credit request, if it does, exercise all your appeals rights to secure the credit.

If enough claims come in with this process flaw, it will stimulate a compliance review project, the dealers failing to comply will bare the impact, you may experience inconvenience trying to right the incompetence of these dealerships.

Having an IRS veteran on this site is awesome, thank you for all your insight.

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