clean vehicle credit for 2024

[HOPE2]

What if a buyer has insufficient tax liability to fully use a transferred credit? (added October 6, 2023)

A4. The amount of the credit that the electing taxpayer elects to transfer to the eligible entity may exceed the electing taxpayer's regular tax liability for the taxable year in which the sale occurs, and the excess, if any, is not subject to recapture from the dealer or the buyer.

Hi to all, today IRS added some new to FAQs on its website. My question is how seller can find out taxpayer tax liability while he/she did not file tax return if wants to take this credit at the point of sell in dealership? And how we can figure out client already used this credit in the dealership?

[TaxGuyBill]

I haven't read the new Regs yet, but it seems like the dealer doesn't need to know, because there is recapture.  It seemingly says they get the $7500, regardless of any tax liability.

Ask the client if they received it?  And if the received it from the dealer, it seems likely that their vehicle purchase paperwork would show it somewhere.

[HOPE2]

IRS says: Buyers who transfer the credit must complete and
submit form 8936 Schedule A using information from
the time of sale report when filing their annual tax
return. Even if the vehicle is eligible, buyers who elect
to transfer the credit but who fail to meet the income
thresholds or eligibility criteria will need to repay the
IRS when filing their tax return.