To transfer a clean vehicle tax credit to a dealer, follow these steps:
Required Information and Attestations
- Date of Transfer Election: Provide the date you are electing to transfer the credit.
- Taxpayer Identification Number: Share your taxpayer ID with the dealer.
- Photo Identification: Provide a photocopy of your valid, government-issued photo ID.
- Modified Adjusted Gross Income (MAGI) Attestation: Confirm that your previous year’s modified AGI did not exceed the limit, or you believe your current year’s will not.
- Vehicle Use Attestation: For new vehicles, confirm the vehicle will be used predominantly for personal use.
- Qualified Buyer Attestation for Previously Owned Vehicles: Declare you are a qualified buyer if applicable.
- Filing Intent Attestation: Confirm you will file a tax return, including the credit and vehicle details.
- Transfer Limit Attestation: Ensure this is your first or second transfer of the credit for the year.
- Recapture Attestation: Agree to repay the credit if you exceed the MAGI limit.
- Voluntary Election Attestation: Confirm you voluntarily elected to transfer the credit.
Procedure
- Eligible Dealer: Ensure the dealer is registered and eligible to receive the credit.
- Immediate Benefit: Receive an immediate reduction in the purchase price from the dealer equal to the credit amount.
- Tax Filing: File Form 8936 with your tax return, indicating the transfer of the credit.
- Reporting: Dealers must meet specific reporting requirements for the vehicles to be eligible for credits.
In 2024, transferring the credit allows for an immediate financial benefit and avoids limitations based on tax liability. However, if your MAGI exceeds the limits, you must repay the received amount.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-i-transfer-a-clean-vehicle-tax-credit-to-a-dealer/
