EV Credit

[JMT2022]

My client purchased a 2022 Tesla Model 3 June 3, 2022.  Form  8936 gives me a Tentative credit of Zero.  How do I get ProSeries to let me claim the credit?

IRS: If you entered a written binding contract to buy a vehicle after December 31, 2021, and before August 16, 2022, but took delivery on or after August 16, 2022, you may elect to claim the credit based on the prior rules.  To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle.  Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return. 

How to Claim the Credit

To claim the credit for a vehicle you took possession of in 2022, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Pl... with your 2022 tax return. You will need to provide your vehicle's VIN.

[IntuitRichard]

I believe you should be able to get the credit to calculate using the 8936 worksheet.  I setup a dummy return and was able to get a tentative credit of 7,500.  I would recommend contacting ProSeries Technical support if you are unable to get the credit to calculate properly.

[sjrcpa]

No credit for Teslas purchased in 2022. 

[TaxGuyBill]

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@JMT2022 wrote:

IRS: If you entered a written binding contract to buy a vehicle after December 31, 2021, and before August 16, 2022, but took delivery on or after August 16, 2022, you may elect to claim the credit based on the prior rules.  

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Yes, and those "prior rules" say that Tesla hit the manufacturing 'cap' and that they don't qualify for a credit anymore (until the new rules started in January of 2023).

https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-pur...

[Just-Lisa-Now-]

2022 was a bad year to buy a Tesla.

[qbteachmt]

Bookmark and use this website:

https://afdc.energy.gov/laws/electric-vehicles-for-tax-credit

There are tabs there, to help, because there are at least three ways to check on this. By year purchased, by year in service, and whether it is used or new. For instance, one requirement changed in August 2022 (location of final assembly).

[DentonWineGuy]

A new client has asked me to file for the EV credit on a Tesla purchased in 2021 (new). I've created the 1040x and entered all info by the X return isn't pulling the credit. What am I missing? Thanks for the help. 

[qbteachmt]

"What am I missing?"

You might have overlooked that links are provided in this topic, for you to click on and follow, to use the IRS and government's resources and the VIN of that car and the purchase date to determine if that vehicle even qualified. Tesla reached the max sales for the credit (which was an incentive) and the models don't by default qualify for any credit.

Did you research that vehicle?

Example:

Expand the Tesla section at https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-pur... to see there is no 2021 credit.