What is the rule for keeping your rebates when you sell

[wheelspin]

We will would like to sell the car to Coparts or similar company as-is after our accident rather then repairing it. Is the rule one year from the date of purchase for the federal rebate? We live in PA and got a rebate from them as well, so I will have to call them and ask them about their specifics, but if anyone knows please share. We purchased the car on Aug 10th 2011 and we registered the car in Pa on October 1st 2011. TIA

This is referring to the car that I have posted on here a couple times just fyi.

 

[EVDRIVER]

The Fed rebate is yours to keep as soon as you buy the car.

 

[planet4ever]

More specifically, the federal amount is a tax credit, not a rebate. You placed the car in service during 2011 and presumably claimed the credit last spring as part of your 2011 income tax forms. The law says only a "new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year." The only way to lose any part of that credit would be for the IRS to show that it wasn't valid in the first place. (For example, that you didn't owe enough tax for the year to claim the whole amount.) What you do with the car now has nothing to do with last year's taxes.

On the PA rebate, I sure couldn't find anything that says you have to keep the car for a specific length of time, so I don't think you have to worry about that one, either.

Ray

 

[wheelspin]

Thanks Ray and EVdriv

 

[sirfergy]

That's different than the hybrid credit which required you to keep the car in service for two years. I'm surprised the ev credit isn't isn't the same.

 

[davewill]

The only limitation on the federal tax credit is that you can't purchase the car with the intent to resell. Since you did not do this, no problem.

 

[redLEAF]

We will would like to sell the car to Coparts or similar company as-is after our accident rather then repairing it. Is the rule one year from the date of purchase for the federal rebate? We live in PA and got a rebate from them as well, so I will have to call them and ask them about their specifics, but if anyone knows please share. We purchased the car on Aug 10th 2011 and we registered the car in Pa on October 1st 2011. TIA

This is referring to the car that I have posted on here a couple times just fyi.

Lucky you aren't in CA, on their extra incentives you have to keep the car registered for 3 years (their DMV checks annually) so they would want their money back --- here in IL we get a 10% MSRP EV rebate with no strings attached. Still unfortunate about your accident but some consolation that it doesn't involve a penalty --- no one would purposely destroy the car just to keep a rebate anyway.