$4000 tax break? Has anyone gotten it on a used Leaf?

[Mike Nassour]

The title says it all. Supposedly, the IRS is offering a tax break up to $4000 on used electric vehicles, that are at least two years old, cost less than $25K, assuming your income is less than $150K married or $112K single. Has anyone here done this? If it works, this could be the move that causes us to purchase a particular Leaf here in Austin. I've posed the link to the IRS website below. Thanks in advance for any info you may have!

IRS regulations on used EV Credit

https://www.irs.gov/credits-deductions/used-clean-vehicle-credit

 

[marshallinwash]

I bought a 2022 Leaf SV plus in January and got the tax credit money upfront at point of sale. The dealership didn't know anything about at the time. I had to spend a couple of hours waiting until they figured it out.

On top of that, the IRS web site couldn't handle the load at the time. Too many dealerships signing on in January.


The nice thing is that the IRS said they wouldn't try to recapture the tax credit money you got at point of sale if you didn't own that much in taxes, providing you where within the income limits. So I suggest you get your money upfront.

I suspect, some folks may be surprised come their tax filing time if the take the money upfront.

For example, you owe and pay $4,000 in taxes for year 2024. You file your taxes thinking you have a used car tax credit of $4,000. Some folks may think they will get a refund of $4,000. However, they already got their refund of $4,000 upfront at time of purchase. So no refund check.

 

[Mike Nassour]

Down here in Texas I've talked to three dealerships so far and none of the sales folks knew of the used EV rebate. You'd think that this would be a valuable tool to move these cars in a time when demand is softening. So there was no question of getting the money off at time of sale, we would have had to have waited until tax time to get it.

 

[MikeinPA]

Here in PA, some of the dealers are wrapping the the 4k into the advertised price, and some of those dealers are hiding the fact all the way down in the fine print. Strangely, the final prices of 2022 Leafs and Bolts after the 4k is the same prices as 2023 models--my perception is the dealers have just scarfed up the the 4k for their own consumption so to speak.

example: https://www.twinpineford.com/used-Ephrata-2021-Nissan-LEAF-SL+PLUS-1N4BZ1DV3MC552175 with the fine print reading "Final Price includes $4000 Used Clean Vehicle Credit (EV or FCV), to be claimed at time of vehicle delivery - IRS Tax Code Section 25E. "

they wouldn't try to recapture the tax credit money you got at point of sale if you didn't own that much in taxes, providing you where within the income limits.

Does anyone have a reference for that? See Q4 page 16 of 25 here https://www.irs.gov/pub/taxpros/fs-2024-26.pdf

 

[marshallinwash]

Down here in Texas I've talked to three dealerships so far and none of the sales folks knew of the used EV rebate. You'd think that this would be a valuable tool to move these cars in a time when demand is softening. So there was no question of getting the money off at time of sale, we would have had to have waited until tax time to get it.

You may have to get the dealership to sign up. So you may have to talk to the manager of the dealership.

I told the salesman that there would be no purchase without the tax credit. So that got the ball rolling.

Make sure you get the Clean Vehicle Seller Report with your paper work.

The sale qualifies only if:

• You buy the vehicle from a dealer.
• 
  
• For qualified used EVs, the dealer reports required information to you at the time of sale and to the IRS.

 

[Mike Nassour]

Yea, they don't even know what the Clean Vehicle Seller Report is. I think I'll check with some Nissan stores and see if they have any used Leafs, they may have a better idea about it.

 

[Sanjuanderer]

My partner bought a 2020 Leaf SV in January for slightly less than $12K, including CO State sales tax. The car had 37K miles on it and it looked new inside and out. The car was advertised at about $16K and there were no shenanigans regarding the $4K point of sale price reductions. She did need to give them her tax information showing that her AGI was less than $75K. If one is not being treated in a similar fashion, go to another dealer!

 

[MikeinPA]

My partner bought a 2020 Leaf SV in January for slightly less than $12K, including CO State sales tax. The car had 37K miles on it and it looked new inside and out. The car was advertised at about $16K and there were no shenanigans regarding the $4K point of sale price reductions. She did need to give them her tax information showing that her AGI was less than $75K. If one is not being treated in a similar fashion, go to another dealer!

As long as the battery is in great shape you hit the right price. I am seeing the same prices here in PA.

 

[archuser]

I used the $4000 Federal rebate & the $5000 Oregon Rebate to get a 2020 SV under 30,000 miles.....Final costs with all taxes & fees were $8510. The battery is at 89% right now (The car lived in So Cal for its life & got quite a few quick charges). I've been EV trained & when the battery goes out of warranty I will source & replace the battery myself (I've worked on Leafs at an independent shop).

 

[Mike Nassour]

Well, it looks like no Leaf for us. The electrical estimates are coming in around $10,000 due to the fact that the outside breaker box must be replaced and the current electrical service to the house doesn't even meet current codes! It was originally set up in 1950. So thanks for the info very much and if we can find a way around all this, we'll be back.

 

[Wrench7747]

Well, it looks like no Leaf for us. The electrical estimates are coming in around $10,000 due to the fact that the outside breaker box must be replaced and the current electrical service to the house doesn't even meet current codes! It was originally set up in 1950. So thanks for the info very much and if we can find a way around all this, we'll be back

Did you do the math to consider charging on 120v? Just plug the car in every night when you come home, and let it trickle.

I started with the standard charger, then bought a used Duosida 16 amp charger on eBay for under $100. I changed the plug on it from 240v 14-50 to 120v 6-20, and I use it on a 20A circuit. My car is usually full by 2am.

I bet you can get an electrician to install a 120v 20a circuit, and change the plug on the charger to 120v, for well under $1000

 

[LeafNissan1]

Marshallinwash said:

The sale qualifies only if:

• 
  
• "You buy the vehicle from a dealer."
• 
  
• For qualified used EVs, the dealer reports required information to you at the time of sale and to the IRS.

Apparently, according to other members, there's a way to use an intermediary service like keysavvy.com and drivecaramel.com to get the $4k tax discount if you find a car from a private party. It's mentioned in this thread: https://mynissanleaf.com/threads/pr...s-for-the-first-time.35916/page-2#post-647163

 

[dean]

Make sure you get the Clean Vehicle Seller Report with your paper work.

Absolutely this!

We bought a Bolt last week. The dealer is not participating in the tax credit at time of sale. No problem, we just need the Clean Vehicle Seller Report. They even tried to give us the runaround on that. The wrangling to get that was worse than the negotiation part. They almost refused and in the end caved.

Be sure to get it before signing any other papers and don't budge if they won't provide it.

There are way too many stories and reports from people trying in vain to get that after the sale is completed.

 

[Brian Hogan]

I bought a 2021 leaf sv from carvana in 12/23 before the 4k was point of sale. There were some forms they provided and I claimed the 4k rebate on my 2023 returns. No issues yet. If you want to avoid dealership hassles, carvana seems to have the rebate process figured out.

 

[bmoh]

I was able to take advantage of this; but dealerships are now just using it to subsidize their earnings.

Saw a 2021 Nissan Leaf SL PLUS with 17, 000 miles for $17,869 and no mention of the tax credit.
Went to the dealership expecting to get it for $14K.

I never test drive before talking turkey. They pulled up the estimate as $21,869 + ceramic coating + dock fee - $4000... The numbskulls even had a "market price" sticker on the window that said $20,500.

Feeling bamboozled, I walked out of there when they wouldn't drop the pre-tax credit price to at least the sticker price.

When the sales manager called me on the way home to re-negotiate the price I told him that not everyone meets the income requirements to use the tax credit.

Careful out there, folks, especially if you live in the South.

 

[danelo]

I was able to take advantage of this; but dealerships are now just using it to subsidize their earnings.

Very true. Once I saw that dealers were giving the discount at time of purchase I saw that prices went up about $1.5k on newer used Leafs.

 

[gozer]

I got my '22 S at nissan in queensbury NY dealer in april. CPO couldnt tell from new 13K miles They had 'no idea' what I was talking about, all they knew was to give me a doc to file with my taxes. I let them blather on then showed them the IRS site that had their name on it, the NY site that had their name on it, then I showed them THEIR OWN WEBSITE with the same info......Told them if they wanted to make a sale TODAY, cut out the malarkey, or I'm going to VT. They knew all about it AND they had cars to sell with NO BS. Took less than a hour after that. Always remember YOU have the Golden Signature, THEY need to make the sale...