Selling my EV. Other sites like keysavvy that do POS EV rebate?

  • Thread starter Thread starter Mark W
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Mark W

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Hi all,

I'm selling my 2019 Hyundai Ioniq Electric. I leased it in 2019, purchased it at the end of the lease in November 2022. I was trying to use keysavvy.com to sell it so my buyer could get the used EV tax credit as I did with my Bolt last year. Had a buyer all lined up, but keysavvy denied him the tax credit saying that the car is not eligible because of the first transfer rule. Basically, keysavvy is saying that I was an "eligible buyer" in 2022, so that used up the tax credit for the vehicle. Can someone point me to information about this? Does this mean that at the end of EV leases, the leasee can get the $4,000 credit when they buy it? It seems to be a grey area of interpretation. Is anyone aware of any other third party companies like keysavvy, that interpret this situation differently that I can sell through? I'm not trying to get around the true regulations, if somebody can point me to something somewhat definitive stating it's not eligible then that's fine too. Thank you.

https://www.keysavvy.com/blog/used-ev-tax-credit-first-transfer-rule
 
It looks like the vehicle isn't allowed the $4,000 tax credit if you where a qualified buyer. However, the question is where you a qualified buyer in November of 2022?

https://www.irs.gov/credits-deductions/used-clean-vehicle-credit

To qualify, a vehicle must meet all of these requirements:

  • Have a sale price of $25,000 or less. 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.
  • Have a model year at least 2 years earlier than the calendar year when you buy it. For example, a vehicle purchased in 2023 would need a model year of 2021 or older.
  • Not have already been transferred after August 16, 2022 to a qualified buyer.
  • Have a gross vehicle weight rating of less than 14,000 pounds
  • Be an eligible FCV or plug-in EV with a battery capacity of least 7 kilowatt hours
  • Be for use primarily in the United States


The only other dealership that I know of is Caramel.

https://www.drivecaramel.com/how-it-works
 
Digging a little more, since your vehicle would be a second transfer after August 16th, it doesn't matter if you were not a qualified buyer. So no tax credit and keysavvy is correct.

https://www.irs.gov/newsroom/topic-...the-previously-owned-clean-vehicles-credit#q7

Q7. What is the first transfer rule for purposes of being a qualified sale of a previously owned clean vehicle? (updated Oct. 6, 2023)
A7. It is the first transfer of the vehicle after Aug. 16, 2022, of the Previously Owned Clean Vehicle Credit other than to the person who was the original user of the vehicle. See FAQ 4 for information on individuals eligible to claim the Previously Owned Clean Vehicle Credit. The original user’s sale of the vehicle to a dealer or a subsequent dealer does not negate the vehicle’s eligibility for the credit under the first transfer rule. As described in Topic J, FAQ 2, sellers will review vehicle history reports when making attestations regarding the vehicle’s eligibility and submitting seller reports. Please see FAQ 12 for information about eligibility of returned previously owned clean vehicles.

Q14. A previously owned clean vehicle is sold for the first time after August 16, 2022, to an individual for more than $25,000. Will this vehicle be eligible for the Previously Owned Clean Vehicle Credit if it is subsequently sold for less than $25,000? (added July 26, 2024)
A14. No, the vehicle is not eligible for the previously owned vehicle credit and will not be eligible for the credit in any subsequent sales. Only the first transfer of the vehicle after August 16, 2022, is eligible for the Previously Owned Clean Vehicle Credit, regardless of whether the taxpayer is eligible for the credit or chooses to claim or transfer the credit. See FAQ 7.
 
marshall said:
Q7. What is the first transfer rule for purposes of being a qualified sale of a previously owned clean vehicle? (updated Oct. 6, 2023)
A7. It is the first transfer of the vehicle after Aug. 16, 2022, of the Previously Owned Clean Vehicle Credit other than to the person who was the original user of the vehicle.
Click to expand...

What about the text I highlighted in red above that says "original user"? Interesting that they use the term original USER. Why wouldn't they say OWNER? To me, that sounds like they are accounting for lease situations where the original user takes ownership?
 
marshall said:
Mark, the way I read it, your car doesn't qualify. Carmel will tell you the same thing. Ask them.
Click to expand...

It does seem that way. I just don't want to sell it now for less without the rebate and then find out later it should have been eligible.
 
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