If you have not already done so, please review our details on eligibility of the used electric vehicle tax credit (also referred to as the previously-owned clean vehicle tax credit or the 25E credit). If you meet the eligibility criteria noted, please continue reading for the important details on obtaining the used EV tax credit.
The first and most important item to confirm is that the dealer or seller of the vehicle has registered with IRS Energy Credits Online so that they can submit a “time of sale report” (also called a “seller report”). If the dealer/seller cannot submit the time of sale report, your purchase may not be eligible even if you meet all the criteria. Only those with a used vehicle sales license are able to register with the IRS Energy Credits Online system so private sales will not be eligible for the used vehicle tax credit.
We also recommend that you double check with the seller that you will be the second owner of the vehicle OR that the vehicle has not been transferred (sold to a person that was not the original owner) after August 16, 2022. This means that if you are the third or fourth owner of the vehicle that is ok as long as all previous sales were made prior to August 16, 2022.
Assuming the seller/dealer has registered with IRS Energy Credits Online and can submit a report, please confirm whether the seller will offer the tax credit as a point-of-sale (POS) deduction. This is not required by the seller, but most sellers will provide the credit at the POS. If the seller will not provide the credit POS, EV Life can work with you to get the same benefit by deferring the tax credit as part of the loan. Regardless of whether the tax credit is provided at POS or whether it is deferred through an EV Life Loan, the seller will still need to submit the time of sale report.
Purchase your eligible electric vehicle (see our details of the eligibility criteria). In addition to collecting the normal paperwork, ask the seller for the time of sale report (also called a seller report) submitted to IRS Energy Credits Online. No further action is required until you file your tax return for the calendar year of the vehicle purchase. When you file your taxes with the IRS you will need to include additional paperwork to claim or report the credit. If you obtain financing from EV Life, we provide you with post-purchase incentive support to help you with filing forms as well as all the other perks and benefits of driving an EV.