Leasing vs. Purchasing
- Leased vehicles: The tax credit typically goes to the lessor (dealership/manufacturer), not the lessee, under the 45W commercial clean vehicle credit.
- Negotiate with the dealer: While lessors claim the credit, they may pass savings to you via lower lease payments or upfront discounts. Ensure this is explicitly stated in your contract.
If You Purchase the Vehicle
For purchased EVs (if applicable), follow these steps to claim the credit:
- Confirm eligibility:
- Income ≤ $75k (single), $150k (joint), or $112k (head of household).
- Vehicle is new, purchased for personal use, and meets IRS criteria.
- Obtain documentation:
- Time-of-sale report (provided by dealer at purchase).
- VIN for Form 8936.
- File Form 8936:
- Attach the form to your tax return using tax software (e.g., TaxAct) or a tax preparer.
- Navigate to Federal > Other Credits > Form 8936 in TaxAct to input vehicle details.
Critical Notes for Leases
- Review your lease agreement: Confirm whether the dealer applied the 45W credit to reduce your payments.
- No claimant action required: Lessees do not file Form 8936 unless they purchase the vehicle.
- Point-of-sale benefit: If purchasing (not leasing), dealers can now transfer the credit to you as a discount at purchase.
For leased EVs, focus on negotiating the credit’s benefit upfront, as you cannot claim it directly. For purchases, file Form 8936 with your tax return.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-steps-should-i-take-to-ensure-the-tax-credit-is-applied-to-my-lease/
