To qualify for both federal and state electric vehicle (EV) tax credits, you need to have specific documentation primarily related to your vehicle purchase and your eligibility. Here’s a detailed overview of the documentation required:
Federal EV Tax Credit Documentation
1. Seller-Provided Report at Time of Purchase
The dealership or seller must provide a report including the following:
- Seller’s name and taxpayer identification number (TIN).
- Your name and TIN.
- Date of sale and sales price.
- Vehicle Identification Number (VIN).
- Battery capacity of the vehicle.
- Verification that you are the original user of the vehicle (for new vehicles).
- Statement of declaration from the seller under penalty of perjury.
- Verification of the maximum tax credit the vehicle is eligible for.
This report is essential as it contains all data you need to claim the credit or report the purchase on your tax return.
2. IRS Form 8936: Clean Vehicle Credit
You must file IRS Form 8936 with your federal tax return. This form requires:
- The VIN of the vehicle.
- Information related to eligibility and credit amount.
This form is used to calculate and claim the federal clean vehicle credit for qualified EVs placed in service during the tax year.
3. Personal Eligibility Documentation
- Your modified adjusted gross income (MAGI) must be within IRS limits ($300,000 for married filing jointly, $225,000 for head of household, $150,000 for others).
- Confirmation that the vehicle is for personal use and not for resale.
- Your photo ID and taxpayer identification when transferring the credit at the point of sale (if applicable).
- You must file a tax return for the year the vehicle was acquired.
State EV Tax Credit Documentation
State EV tax credits vary by state, but generally, you will need:
- Proof of vehicle purchase (bill of sale or purchase agreement).
- Vehicle registration in the state offering the credit.
- Manufacturer’s certification or documentation indicating the vehicle qualifies under state program criteria.
- Any state-specific application forms completed with detailed vehicle and owner information.
- Proof of residency in the state (driver’s license or state ID).
Because state requirements differ, you should check your state’s specific EV tax credit program for exact documentation details. The paperwork often includes submitting the federal Form 8936 or dealer’s report as supporting evidence.
Summary
To qualify for federal and state EV tax credits, you need to have:
- The dealer’s report with all required vehicle and seller/buyer information.
- Your completed IRS Form 8936 when filing federal taxes.
- Proof that you meet income and usage qualifications.
- Documentation specific to your state’s EV credit program, including proof of purchase, vehicle registration, and state application forms.
Gather these documents at the time of purchase and keep them for your tax filing and any state application processes.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-documentation-do-i-need-to-qualify-for-both-federal-and-state-ev-tax-credits/
