Federal tax rebate for EVs - can this be right wrt title?

K

Kip Landingham

New Member
Hi, the fed tax credit for EV's of up to $7500 looks very tempting. But when I went to the IRS site and read the fine print, I found a sentence like "...the vehicle is not considered acquired until the title is passed to the taxpayer under state law." My credit union tells me that if I take out a loan to buy the car, I don't get the title until the loan is paid off. So my interpretation of all this is that to apply for the credit I have to have the title in-hand, therefore to get the credit next tax time, I have to pay cash for the car so I immediately get the title, or I have to wait until the loan is paid off to apply for the credit, at which time the incentive will likely be long gone.

I hope someone can tell me my interpretation(s) are incorrect!!

Thanks.
 
Kip Landingham said:
My credit union tells me that if I take out a loan to buy the car, I don't get the title until the loan is paid off.
Click to expand...
They hold a 'lien' against the title and this is registered with the local vehicle department. You are still listed on the title as the vehicle owner including for IRS purposes.

Bob Wilson
 
Bob is correct. If you buy the car, cash or credit, the tax credit is yours to use. If you lease the car, the tax credit goes to the leasing company.

You of course have to owe that much in federal taxes to use it all.
 
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