There are no fees explicitly associated with transferring the federal EV tax credit to a dealer. The Internal Revenue Service (IRS) confirms that transferring the tax credit to a registered dealer is voluntary and dealers cannot require buyers to transfer their credits.
When the credit is transferred at the point of sale, it reduces the purchase price of the qualifying vehicle immediately, allowing buyers to benefit from the credit upfront rather than waiting to claim it on their tax return. However, buyers still pay sales tax and licensing fees based on the full purchase price before the credit is applied, not the reduced price after the credit. This means the credit lowers the vehicle price but does not reduce taxes and fees owed on the original price.
Additionally, dealers do not need to have tax liability to receive these transferred credits, as they act only as pass-through entities passing the full credit amount to the buyer. There is no mention of any transfer fees charged by dealers or the IRS for this transaction in the available information.
In summary:
- No mandatory fees or costs are required to transfer the EV tax credit to the dealer.
- Transferring is optional; buyers can also claim the credit on their tax return without transferring.
- Sales tax and licensing fees are calculated on the full vehicle price before applying the credit.
- Dealers simply pass through the credit amount and do not charge fees for this process.
Thus, buyers should not expect additional fees connected with transferring the EV tax credit to a dealer based on current IRS guidelines and existing explanations.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-fees-associated-with-transferring-the-ev-tax-credit-to-a-dealer/
