Yes, you can effectively reduce your upfront costs or lease payments by having the dealer transfer the federal clean vehicle tax credit to lower the vehicle’s price. Starting January 1, 2024, buyers can transfer the tax credit to a registered dealer at the point of sale, which the dealer applies as a price reduction rather than waiting to claim the credit on your tax return.
Key details:
- Where it applies: The credit is transferred to registered dealers for new or pre-owned EVs meeting federal criteria.
- Lease consideration: While the IRS guidelines focus on purchases (including used vehicles ≤$25,000), leased vehicles may qualify under separate commercial clean vehicle credits, but the direct point-of-sale rebate via dealer transfer typically applies to purchases. Confirm with the dealer if similar benefits apply to leases.
- Process: Provide the dealer with required IRS documentation (e.g., tax information) to transfer the credit and reduce the vehicle’s purchase price immediately.
Always verify the dealer’s registration status and eligibility with the IRS. Note that lease-specific tax credit pass-throughs may vary depending on how lessors structure agreements.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-get-a-rebate-or-reduced-lease-payments-if-the-dealer-passes-on-the-tax-credit/
