Used EV credit may not apply?

[palango7]

I need some clarification.

I have a client who purchased a used Tesla this year.  His 2024  AGI is 10k and he will be due a refund.  Eventhough he meets all the criteria for the 4k, the fact that he doesn't owe taxes means he is NOT eligible to take advantage of the 4k rebate.  Did I understand this right?

[abctax55]

Rebate?

Or credit?

[Just-Lisa-Now-]

The EV tax credit is a nonrefundable tax credit offered to taxpayers who purchase qualifying electric vehicles or plug-in hybrid vehicles. Nonrefundable tax credits lower your tax liability by the corresponding credit amount but do not result in a refund of any excess credit amount

[palango7]

Credit. Sorry for the confusion 

[palango7]

There may be a loophole which is that if you transfer the tax credit to a participating dealer, then the dealer can lower the cost of the vehicle up to the 4k. Am not sure how this applies to my client's situation

[sjrcpa]

That is done at the time of purchase. It would be shown on the purchase receipt.

Too late now.