yobigd20
Well-Known Member
If the owner claimed the $7500 tax credit, he is liable to pay it back to the government. From my understanding this is called a recapture event which is triggered within 3 years of when the vehicle was placed in service if the taxpayer sells or disposes of the vehicle. Because the car was lemoned it no longer qualifies for the credit so therefore AFAIK the government can go after him if he doesn't give the credit back.