Electric Vehicle Credit

[Bone1421]

We have a client in MD that purchased a Tesla Model 3 and has been provided an IRS Form 15400 stating the Maximum credit is $7,500. Is there a Federal and MD credit available and how are the credits taken for 2023? Forms?

[sjrcpa]

Have you even tried to look up anything about electric vehicle credits?

You could start by searching the forum. There are several threads going.

[qbteachmt]

"and has been provided an IRS Form 15400 stating the Maximum credit is $7,500. Is there a Federal"

Yes, you just pointed out this IRS form is for Federal.

You can look up the requirements and eligibility at:

https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

and:

https://fueleconomy.gov/feg/tax2023.shtml

But it seems you have the right form, already, as evidence your taxpayer has been reported:

https://www.tesla.com/support/ira-clean-vehicle-report/2023

MD has an excise tax credit:

https://mva.maryland.gov/Documents/VR-334.pdf

https://mde.maryland.gov/programs/air/mobilesources/pages/zev.aspx

• Federal Income Ta​x Credit up to $7,500 for the purchase of a qualifying Electric Vehicle or Plug-in Hybrid.
• Maryland Excise Tax Credit of ​$3,000 for qualifying zero-emission plug-in electric or fuel cell electric vehicles. ​​

[Bone1421]

Thanks very much for the information for the MD EV Buyer Excise Tax Credit. It is important to note this appears to be a form to be filled out by the purchaser separate from their income tax filings. 

Given the application to receive this credit has a finite pool of monies, it would seem the dealer should fully explain to the purchaser at the point of sale.

Thaks again for the quick responses!!!