EVNow
Well-Known Member
You might be able to keep the fed credit if you resold it soon, but the CARB money is supposed be be returned if you don't keep the car for some long period of time.
In CA you have to return the prorated money if the car is sold within 3 years.
For the federal tax credit, it is a bit unclear. From IRS ...
The purchaser may claim a credit in the certified amount with respect to the vehicle if the following requirements are satisfied:
(1) The vehicle is placed in service by the taxpayer in a taxable year beginning after December 31, 2009, and is acquired by the taxpayer after December 31, 2009;
(2) The original use of the vehicle commences with the taxpayer;
(3) The vehicle is acquired for use or lease by the taxpayer, and not for resale; and
(4) The vehicle is used predominantly in the United States.
The question is - when is the car considered to have been acquired for resale. If someone buys an EV and sells within a week, does it constitute "acquired for resale" ? What if the seller says, he got the car hoping/assuming it would work for him, but it didn't. I guess a question for tax lawyers and subject to interpretation by the IRS guy handling the return.