Yeah I’m confused as well. Sticker price was $21,988. I put $6k down and did purchase the maxcare warranty for about $2k. My amount financed after sales tax was around $19k. I checked the IRS and fuel economy website before I went and looked at it and I meet every requirement. I’m wondering if it’s something screwed up with the IRS rollout of this, which honestly wouldn’t surprise me.
Sounds like the warranty brought you to around $24,000. Just make sure there are no other fees that brought the purchase price above $25,000.
No. "Sale price includes all dealer-imposed costs or fees not required by law. It doesn't include costs or fees required by law, such as taxes or title and registration fees."
One of these PHEVs or BEVs had registration issues with the VIN way back between the manufacture and the IRS. I would see if this is the issue with your purchase.
I also purchased a Clarity from Carmax and two days after the sale they said it didn't qualify from the IRS. Didn't have any reply on why. The history report shows one owner in California, but it did show a title event in Nevada in Nov 2023 that I am wondering if that would be it. They said to call the IRS to help. @ClarityRVA could you share the number you called / results of your effort?
I had a similar experience last week trying to purchase a 2018 Clarity PHEV in Seattle. Ticked all the IRS boxes, even stated on their site that it was eligible, but when the dealer logged on to get the $4000 tax credit the message was that the car was not eligible.
Haven’t called anyone yet. I’ve got to set aside some time and mentally prepare myself for the torture of trying to talk to these people.
I have been doing used EV shopping for weeks now, and have seen absolutely no mention of the tax credit in any ads, at any dealership and talking with any sales people. I think sellers are missing a big opportunity.
I called the IRS helpline at 1-800-829-1040 and they just directed me to https://fueleconomy.gov/feg/taxused.shtml, but could not look up my VIN to tell me the specific reason why it didn't qualify.
Thanks you saved me a bunch of trouble. Just for the heck of it I punched the car’s info into turbo tax to see if I had bought it in 2023 if the credit would go through and it did. So we will see what happens next year when I file my 2024 taxes.
So, for you guys having trouble with the 2024 purchases and finding out days later that they are not eligible, was that after the purchase was finalized, or did it prevent you from buying the car? I thought the response at the dealership from the IRS was a real time response?
Been doing some used EV shopping for a while now. Most dealerships still don't seem to know about this. Currently, the EVs easily found under $25,000 are Leaf, Bolt, Model S, Model 3, i3, Kona, Niro. Some ID.4 and Mach-e are almost there, but not yet. If anyone in the Northeast has an ID.4 or Mach-e they are selling, let me know. Using keysavvy.com can allow third-party sales to qualify for the $4,000 tax credit, and keysavvy will do the credit off the sale price. I used them to sell my Chevy Bolt last year and the process was great. https://www.keysavvy.com/how-it-works
For those thinking of selling as a private party vs trading in and buying a different vehicle, make sure you run the numbers, as some states deduct the value of a trade-in before calculating the sales tax.
I just purchased (01/30/24) a 2022 Ioniq 5 SE and it qualifies for $4,000 tax credit. The dealership I purchased it from did all the paperwork for me to file on my personal tax return for 2024. I was never offered the option of signing over the $4,000 to the dealership to have it applied to the and deducted from the price of the vehicle. Now comes the Catch 22 question! Because of the way my annual income in set up I don't have to file Federal income taxes. According to the IRS instructions I have read, this is a no-refundable tax credit and since I do not owe any taxes, I am not eligible for the $4000 refund. Now the kicker, in the IRS guidelines it also states if one applies the $4000 tax credit through the dealership then the buyer gets the benefit regardless of how much tax they may owe when filing their return-meaning they can claim it even if they don't owe the IRS any money at all. The quandary I find myself in is the deadline for the dealer to apply the $4000 credit towards cost of the vehicle expires three days from the date of purchase. Can I somehow still file a personal return and get the refund from the IRS?
Ouch! The tax credit is nonrefundable. However the IRS said they would not recapture the tax credit if you are under the income limits and you got the money upfront. So unless the dealership signs up to transfer the money for the tax credit to them and can work out the mistake with the IRS, you are out $4,000 if you don't owe that much in taxes.
I have been seeing more dealers listing the tax credits in their listing lately. I also had a dealer contact me back saying that they had added the POS tax credit.