The IRS is erroneously nullifying vehicles that qualify for the EV Used Car Tax Credit.

[macarose]

Just an FYI...


I'm seeing a lot of deals where an EV qualifies for the tax credit on the IRS Portal. But after it is submitted, that $4000 tax credit gets holed up in a 'pending' status.


This has gone on since April.


The culprit? Certain IRS employees who handle the EVs tax credit don't know the rules or have access to basic vehicle information.


It's causing a huge bottleneck.


So if you are going to buy an EV between now and the end of September, make EXTRA SURE that the last owner had bought it before 2023.


Those are the only ones which are getting automatically approved right now.


I have been watching more and more 'pending' deals sit for months on end which means, no tax credit. And dealing with the IRS right now is a lot like building a swing that faces a brick wall.



They are understaffed. Certain employees are also just plain clueless. So be careful.

 

[rstcso]

Certain IRS employees who handle the EVs tax credit don't know the rules or have access to basic vehicle information.

No discounting this is causing grief for some buyers. Things must have been so much simpler for the IRS employees when there wasn't any enforcement of the rules and everybody got the credit.

 

[macarose]

No discounting this is causing grief for some buyers. Things must have been so much simpler for the IRS employees when there wasn't any enforcement of the rules and everybody got the credit.

That was never the case. I have been doing this since the beginning.

Every single EV that I get from a wholesale source or is a trade-in had the VIN evaluated through the IRS Portal before I bought it.

There were no issues until April of this year. Everything worked fine.

 

[2strokeNorthstar]

I wish the IRS was that clueless when I owe them money

 

[97prizm]

Just an FYI...


I'm seeing a lot of deals where an EV qualifies for the tax credit on the IRS Portal. But after it is submitted, that $4000 tax credit gets holed up in a 'pending' status.


This has gone on since April.


The culprit? Certain IRS employees who handle the EVs tax credit don't know the rules or have access to basic vehicle information.


It's causing a huge bottleneck.


So if you are going to buy an EV between now and the end of September, make EXTRA SURE that the last owner had bought it before 2023.


Those are the only ones which are getting automatically approved right now.


I have been watching more and more 'pending' deals sit for months on end which means, no tax credit. And dealing with the IRS right now is a lot like building a swing that faces a brick wall.



They are understaffed. Certain employees are also just plain clueless. So be careful.

The average person can see irs tax credits pending? I didn't think that was public information nor accessible

 

[rijndael]

There were no issues until April of this year. Everything worked fine.

There's been a massive amount of employee turnover at the IRS this year. Entire teams have had full turnovers, contractors too.

 

[thastinger]

Soooo, how does this work? The original owner got a 7K credit, keeps it for 2 years then the new owner gets a 4K credit? There can be 11K in tax credits on a 30K vehicle?

 

[AZjeff]

So be okay with the price you pay for the EV and if the credit comes through it's a bonus? Wonder if the delay extends until the credit is cancelled in September the pending credits will be cancelled too?

 

[macarose]

The average person can see irs tax credits pending? I didn't think that was public information nor accessible

I have been a dealer for over 20 years now. A few folks here have actually bought vehicles from me.

If you would like to be a bit more familiar with my work click here, here and here. I wear a lot of hats in the car business. I even was an auto auctioneer for what now seems like a past life.

 

[macarose]

Soooo, how does this work? The original owner got a 7K credit, keeps it for 2 years then the new owner gets a 4K credit? There can be 11K in tax credits on a 30K vehicle?

Hypothetically yes. But most folks end up keeping their new vehicles for more than two years unless it was a short-term lease.

Even then the used car or truck has to be under $25,000 to qualify for the 'used car' tax credit. And not a lot of popular two year old EVs are below that price point.

 

[dishdude]

I would not buy a used EV expecting to ever receive this credit.

 

[MolaKule]

Not open for further replies pending Admin discussion on veracity of posts.