Commercial Clean Vehicles Credit

[AnmarieA]

I have a client who is a business operating as a sole proprietor and filing Sch C to file their business income. The client is planning on buying a used EV and the dealer asked him if he wants the purchase in his or business name. It will be 100% used by the foreman for business purposes only and I explained that in order to have this as an asset of the business and depreciate the vehicle, it must be in the name of the business. The EV credit is available to businesses as well as individuals but is an EV credit only allowed to individuals with regards to previously owned vehicles? This may be the only reason the car dealer is asking the business owner this question? I have not dealt with EV credits for any of my clients so not sure if the credit on previously owned vehicles is only available to individuals and not businesses? What I read is the purchase price cannot exceed $25K, does this threshold still apply for purchases in 2025? 

Feedback welcome. 

[qbteachmt]

"it must be in the name of the business."

A sole proprietor is their own business. The business is not a separate entity.

"in order to have this as an asset of the business and depreciate the vehicle"

A Sole Proprietorship can use mileage allowance as expense or actuals.

What your taxpayer does is track the business use = keep a log. They also should have adequate insurance coverage for the employee to be driving this vehicle. It's technically still a private vehicle. It's not a specialty vehicle. The employee is taxed through payroll on any personal use, by the way.

As for if that specific model and year qualifies, the price limits, etc, you  can look it up at the IRS. Don't take the salesman's word for anything.