Fed Tax Credit multiple times in same year?.

[booper]

Anyone know if you could make use of the fed tax credit multiple times in one year? For example, if you purchased 2 Leafs, you could get 15k in tax credits?

Also, can anyone confirm that it is your tax liability which must exceed the tax credit to make full use of it, even if you paid most or all of it through payroll deduction, you could get a refund of what you already paid in.

 

[Levenkay]

Anyone know if you could make use of the fed tax credit multiple times in one year? For example, if you purchased 2 Leafs, you could get 15k in tax credits?

Also, can anyone confirm that it is your tax liability which must exceed the tax credit to make full use of it, even if you paid most or all of it through payroll deduction, you could get a refund of what you already paid in.

Well, that's pretty much what Nissan's doing when it leases new LEAFs; they're claiming hundreds of tax credits per month. "Buy ten LEAFs and save even more!"

 

[knightmb]

Anyone know if you could make use of the fed tax credit multiple times in one year? For example, if you purchased 2 Leafs, you could get 15k in tax credits?

Also, can anyone confirm that it is your tax liability which must exceed the tax credit to make full use of it, even if you paid most or all of it through payroll deduction, you could get a refund of what you already paid in.

Yes, 2 Leaf can get you $15k in "non-refundable" tax credits, so you have to owe at least $15k in taxes to take advantage of it from what I've read in the tax code for it.

 

[GerryAZ]

Just to clarify some of the answers: You may claim tax credits for more than one electric vehicle if you have sufficient tax liability for the year. Unlike some other credits, you cannot carry over unused credit to the following year. Whether you owe additional tax payment or expect a refund does not matter, it is tax liability (income tax for the year) that counts. Therefore, you will get a large refund if you had withholding or made estimated payments based upon tax liability without credits.

 

[redLEAF]

Just to clarify some of the answers: You may claim tax credits for more than one electric vehicle if you have sufficient tax liability for the year. Unlike some other credits, you cannot carry over unused credit to the following year. Whether you owe additional tax payment or expect a refund does not matter, it is tax liability (income tax for the year) that counts. Therefore, you will get a large refund if you had withholding or made estimated payments based upon tax liability without credits.

+1 -- some folks for instance who purchased a single LEAF (not leased!) had say $6,000 in Federal Tax deducted in the year they bought it and thought they could carry over the extra $1,500 (for a total of $7,500) but it doesn't carry over like for instance capital losses ($3K max per year). Others, who for instance may be retired and pay very little if any fed taxes would be better off leasing to maximize the incentive.

Still best off talking it through with your tax preparer (and I would think someone who can buy two LEAF's in a year uses one) before assuming you can take the full $15K; many of these folks may have never done one (unless you're in an area where lots of EV's are sold); when we bought our '12 in the 2011 tax year, I was my CPA's first one -- that year, we saw an almost 5-figure refund (we also had some energy credits, etc.) and he checked his interpretation of the tax code and numbers twice.

 

[booper]

Thanks to all that posted responses. This was all extremely helpful.