Plug-in Hybrid Federal Tax Credit

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Elysium
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Plug-in Hybrid Federal Tax Credit

Post by Elysium » Sun Nov 17, 2019 12:12 pm

We are planning to replace a 2010 Prius Hybrid with a 2020 Prius Prime Plug-In Hybrid. There is a Federal Tax Credit of $4,500 listed for this car . That sounds great on top of all the things we like about this car.

Just to make sure I get this right, the Federal Tax Credit is claimed at the time of Tax Filing, correct? In other words $4,500 comes off of the amount of total taxes we owe during the filing. Do I need to complete any paperwork at the time of purchasing the car, or just need to provide all the information at tax filing time. I would like to hear from EV owners.

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RickBoglehead
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Re: Plug-in Hybrid Federal Tax Credit

Post by RickBoglehead » Sun Nov 17, 2019 12:22 pm

Yes, when you file.

You fill out form 8936.

$4,502.00.
Avid user of forums on variety of interests-financial, home brewing, F-150, PHEV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.

Pu239
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Re: Plug-in Hybrid Federal Tax Credit

Post by Pu239 » Sun Nov 17, 2019 12:26 pm

You are correct. We filed Form 8936 for a PHEV last year and received a $4543 tax credit at filing time. No need to fill out any paperwork at time of sale. We love the car (sorry, not a Prime but we considered one) and the credit really helped.

aristotelian
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Re: Plug-in Hybrid Federal Tax Credit

Post by aristotelian » Sun Nov 17, 2019 12:47 pm

I am going to claim this year for a Nissan Leaf. My understanding is you just fill out the tax form with VIN. The dealer was completely unhelpful. Said as far as they know the car qualifies but beyond that filing for it was completely up to us. We just took a leap of faith that we had everything we need to claim the credit.

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TomatoTomahto
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Re: Plug-in Hybrid Federal Tax Credit

Post by TomatoTomahto » Sun Nov 17, 2019 12:55 pm

aristotelian wrote:
Sun Nov 17, 2019 12:47 pm
I am going to claim this year for a Nissan Leaf. My understanding is you just fill out the tax form with VIN. The dealer was completely unhelpful.
One day dealers and salespeople will know as much about their EV and PHEVs as they do about how many cylinders their ICE cars have. Oops. That’s about zero. :oops: :oops:
Okay, I get it; I won't be political or controversial. The Earth is flat.

Pu239
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Re: Plug-in Hybrid Federal Tax Credit

Post by Pu239 » Sun Nov 17, 2019 1:10 pm

aristotelian wrote:
Sun Nov 17, 2019 12:47 pm
I am going to claim this year for a Nissan Leaf. My understanding is you just fill out the tax form with VIN. The dealer was completely unhelpful. Said as far as they know the car qualifies but beyond that filing for it was completely up to us. We just took a leap of faith that we had everything we need to claim the credit.
Dealers don't know the individual tax circumstances of their buyers so it's understandable they are unhelpful. My dealer didn't offer up any information either. For claiming the credit, you need the year, make and model of the vehicle, VIN, and sale date, that's all. EV tax credits for Nissan, Chevy and Tesla have all started to decline because they all reached the 200,000 sale mark last year. Turbo Tax made it easy.

aristotelian
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Re: Plug-in Hybrid Federal Tax Credit

Post by aristotelian » Sun Nov 17, 2019 1:22 pm

Pu239 wrote:
Sun Nov 17, 2019 1:10 pm
aristotelian wrote:
Sun Nov 17, 2019 12:47 pm
I am going to claim this year for a Nissan Leaf. My understanding is you just fill out the tax form with VIN. The dealer was completely unhelpful. Said as far as they know the car qualifies but beyond that filing for it was completely up to us. We just took a leap of faith that we had everything we need to claim the credit.
Dealers don't know the individual tax circumstances of their buyers so it's understandable they are unhelpful. My dealer didn't offer up any information either. For claiming the credit, you need the year, make and model of the vehicle, VIN, and sale date, that's all. EV tax credits for Nissan, Chevy and Tesla have all started to decline because they all reached the 200,000 sale mark last year. Turbo Tax made it easy.
I believe Nissan's is still 7500. It better be!

orangeandwhite
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Re: Plug-in Hybrid Federal Tax Credit

Post by orangeandwhite » Sun Nov 17, 2019 2:18 pm

Elysium wrote:
Sun Nov 17, 2019 12:12 pm
We are planning to replace a 2010 Prius Hybrid with a 2020 Prius Prime Plug-In Hybrid. There is a Federal Tax Credit of $4,500 listed for this car . That sounds great on top of all the things we like about this car.

Just to make sure I get this right, the Federal Tax Credit is claimed at the time of Tax Filing, correct? In other words $4,500 comes off of the amount of total taxes we owe during the filing. Do I need to complete any paperwork at the time of purchasing the car, or just need to provide all the information at tax filing time. I would like to hear from EV owners.
We have the 2017 Prime and love it. Bulletproof quality and just a fantastic deal.

The credit comes off your federal income tax. The form is exceedingly simple and is supported by TurboTax. You don’t really need to do anything else other than make sure you have enough income tax liability to benefit from the credit.

The state credits (assuming you live where they’re offered) may work differently. Where we live, the state credit was a more like a rebate and had to be claimed directly by the dealer with some specialized paperwork.

Pu239
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Re: Plug-in Hybrid Federal Tax Credit

Post by Pu239 » Sun Nov 17, 2019 3:33 pm

aristotelian wrote:
Sun Nov 17, 2019 1:22 pm
Pu239 wrote:
Sun Nov 17, 2019 1:10 pm
aristotelian wrote:
Sun Nov 17, 2019 12:47 pm
I am going to claim this year for a Nissan Leaf. My understanding is you just fill out the tax form with VIN. The dealer was completely unhelpful. Said as far as they know the car qualifies but beyond that filing for it was completely up to us. We just took a leap of faith that we had everything we need to claim the credit.
Dealers don't know the individual tax circumstances of their buyers so it's understandable they are unhelpful. My dealer didn't offer up any information either. For claiming the credit, you need the year, make and model of the vehicle, VIN, and sale date, that's all. EV tax credits for Nissan, Chevy and Tesla have all started to decline because they all reached the 200,000 sale mark last year. Turbo Tax made it easy.
I believe Nissan's is still 7500. It better be!
Yes, I was wrong. According to Edmunds, it's still $7500. My memory is not as good as I thought!

Topic Author
Elysium
Posts: 1851
Joined: Mon Apr 02, 2007 6:22 pm

Re: Plug-in Hybrid Federal Tax Credit

Post by Elysium » Sun Nov 17, 2019 6:12 pm

Thanks to all for confirming that. I have enough taxes and in fact was going to end up paying more estimated taxes 4th quarter like the other three before, but this might just help me reduce that payment or even completely forgo. There is even a Toyota cash rebate of $2K on the car, can you believe it :shock:

As for state, ours is a state that rejected a bill that promised $3,500 credit for EV/PHEV vehicles, go figure, but recent elections has changed control of state body which might help advance this again for future buyers.

stuyguy
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Re: Plug-in Hybrid Federal Tax Credit

Post by stuyguy » Sun Nov 17, 2019 6:54 pm

Elysium wrote:
Sun Nov 17, 2019 6:12 pm
Thanks to all for confirming that. I have enough taxes and in fact was going to end up paying more estimated taxes 4th quarter like the other three before, but this might just help me reduce that payment or even completely forgo. There is even a Toyota cash rebate of $2K on the car, can you believe it :shock:

As for state, ours is a state that rejected a bill that promised $3,500 credit for EV/PHEV vehicles, go figure, but recent elections has changed control of state body which might help advance this again for future buyers.
I'll be heading to the northeast USA soon to buy another Prime to secure $4502 from feds and $5000 from CO, in addition to Toyota's $2000-3000 depending on the NE state you purchase from, as well as at least $2700 from the dealer I've contacted, AND $750 for having an active Uber driver profile (no requirement to actually drive for Uber). A total discount of about $15,000 or about half the MSRP of XLE trim. Another $500 if you were a member of teamusa . org prior to 11/1/19. Unreal :happy
Check out https://priuschat.com/threads/prius-pri ... ad.174763/

mmmodem
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Re: Plug-in Hybrid Federal Tax Credit

Post by mmmodem » Sun Nov 17, 2019 7:26 pm

Elysium wrote:
Sun Nov 17, 2019 6:12 pm
Thanks to all for confirming that. I have enough taxes and in fact was going to end up paying more estimated taxes 4th quarter like the other three before, but this might just help me reduce that payment or even completely forgo. There is even a Toyota cash rebate of $2K on the car, can you believe it :shock:

As for state, ours is a state that rejected a bill that promised $3,500 credit for EV/PHEV vehicles, go figure, but recent elections has changed control of state body which might help advance this again for future buyers.
Don't forget to check out your utility company. We got a tax credit from Federal, a rebate check from State, and a rebate check from our utility company. I checked at the city level but our city didn't offer anything.

Pu239
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Re: Plug-in Hybrid Federal Tax Credit

Post by Pu239 » Sun Nov 17, 2019 7:47 pm

stuyguy wrote:
Sun Nov 17, 2019 6:54 pm
Elysium wrote:
Sun Nov 17, 2019 6:12 pm
Thanks to all for confirming that. I have enough taxes and in fact was going to end up paying more estimated taxes 4th quarter like the other three before, but this might just help me reduce that payment or even completely forgo. There is even a Toyota cash rebate of $2K on the car, can you believe it :shock:

As for state, ours is a state that rejected a bill that promised $3,500 credit for EV/PHEV vehicles, go figure, but recent elections has changed control of state body which might help advance this again for future buyers.
I'll be heading to the northeast USA soon to buy another Prime to secure $4502 from feds and $5000 from CO, in addition to Toyota's $2000-3000 depending on the NE state you purchase from, as well as at least $2700 from the dealer I've contacted, AND $750 for having an active Uber driver profile (no requirement to actually drive for Uber). A total discount of about $15,000 or about half the MSRP of XLE trim. Another $500 if you were a member of teamusa . org prior to 11/1/19. Unreal :happy
Check out https://priuschat.com/threads/prius-pri ... ad.174763/
Which state/dealer? We might want to jump on this.

inepteft
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Joined: Tue Feb 24, 2015 12:19 pm

Re: Plug-in Hybrid Federal Tax Credit

Post by inepteft » Sun Nov 17, 2019 8:20 pm

Thanks for the responses about the federal filing details. Purchased a new Leaf in CO recently. In addition to the expected $7500 federal tax credit, there was a state credit for $5000 (dropping to $4000 at the end of the year), a $3500 rebate from the local utility, and a dealer incentive for a bit more than $1000. Like a half-price sale if you are already in the market for an EV.

stuyguy
Posts: 30
Joined: Sun Sep 07, 2014 9:27 pm

Re: Plug-in Hybrid Federal Tax Credit

Post by stuyguy » Sun Nov 17, 2019 8:41 pm

[/quote]
Which state/dealer? We might want to jump on this.
[/quote]

Heritage Toyota in Catonsville, MD, has strong deals. See the PriusChat thread on pricing

Topic Author
Elysium
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Joined: Mon Apr 02, 2007 6:22 pm

Re: Plug-in Hybrid Federal Tax Credit

Post by Elysium » Sun Nov 17, 2019 9:40 pm

stuyguy wrote:
Sun Nov 17, 2019 8:41 pm
Heritage Toyota in Catonsville, MD, has strong deals. See the PriusChat thread on pricing
Wow, thanks for posting this. I was going o head off tomorrow to a dealer in MD close to DC metro area with a $3356 discount total thinking I am getting a good deal. Let me check out the thread you pointed out and call this dealer. Thanks again!

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RickBoglehead
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Location: In a house

Re: Plug-in Hybrid Federal Tax Credit

Post by RickBoglehead » Sun Nov 17, 2019 10:27 pm

Pu239 wrote:
Sun Nov 17, 2019 3:33 pm
aristotelian wrote:
Sun Nov 17, 2019 1:22 pm
Pu239 wrote:
Sun Nov 17, 2019 1:10 pm
aristotelian wrote:
Sun Nov 17, 2019 12:47 pm
I am going to claim this year for a Nissan Leaf. My understanding is you just fill out the tax form with VIN. The dealer was completely unhelpful. Said as far as they know the car qualifies but beyond that filing for it was completely up to us. We just took a leap of faith that we had everything we need to claim the credit.
Dealers don't know the individual tax circumstances of their buyers so it's understandable they are unhelpful. My dealer didn't offer up any information either. For claiming the credit, you need the year, make and model of the vehicle, VIN, and sale date, that's all. EV tax credits for Nissan, Chevy and Tesla have all started to decline because they all reached the 200,000 sale mark last year. Turbo Tax made it easy.
I believe Nissan's is still 7500. It better be!
Yes, I was wrong. According to Edmunds, it's still $7500. My memory is not as good as I thought!
Actual source to use: https://www.fueleconomy.gov/feg/taxevb.shtml
Avid user of forums on variety of interests-financial, home brewing, F-150, PHEV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.

Topic Author
Elysium
Posts: 1851
Joined: Mon Apr 02, 2007 6:22 pm

Re: Plug-in Hybrid Federal Tax Credit

Post by Elysium » Tue Nov 19, 2019 12:18 am

stuyguy wrote:
Sun Nov 17, 2019 6:54 pm
Elysium wrote:
Sun Nov 17, 2019 6:12 pm
Thanks to all for confirming that. I have enough taxes and in fact was going to end up paying more estimated taxes 4th quarter like the other three before, but this might just help me reduce that payment or even completely forgo. There is even a Toyota cash rebate of $2K on the car, can you believe it :shock:

As for state, ours is a state that rejected a bill that promised $3,500 credit for EV/PHEV vehicles, go figure, but recent elections has changed control of state body which might help advance this again for future buyers.
I'll be heading to the northeast USA soon to buy another Prime to secure $4502 from feds and $5000 from CO, in addition to Toyota's $2000-3000 depending on the NE state you purchase from, as well as at least $2700 from the dealer I've contacted, AND $750 for having an active Uber driver profile (no requirement to actually drive for Uber). A total discount of about $15,000 or about half the MSRP of XLE trim. Another $500 if you were a member of teamusa . org prior to 11/1/19. Unreal :happy
Check out https://priuschat.com/threads/prius-pri ... ad.174763/
stuyguy - a huge thank you note to you for directing me to this awesome savings. :moneybag

We purchased the car today. I have been working 3-4 dealers since today morning (all through text/call), after doing all the research last night, and closed the deal tonight with the dealer who offered the lowest. Every time the deal got better between the dealers, and the dealer who I was going to go buy from originally came down another $2k overnight, after I worked out deals with 2 others.

Total savings just off of the price including upcoming federal tax credit will be over $10k on a $30k car, that's a whopping 1/3rd of the price of a brand new 2020 model car!

At this rate, I was seriously considering buying a couple more of these cars and keeping one for each family member :D

I look forward to having the experience of our first PHEV car in the coming days ahead.

Pu239
Posts: 155
Joined: Mon Dec 17, 2018 6:24 pm

Re: Plug-in Hybrid Federal Tax Credit

Post by Pu239 » Tue Nov 19, 2019 12:37 am

Elysium wrote:
Tue Nov 19, 2019 12:18 am
stuyguy wrote:
Sun Nov 17, 2019 6:54 pm
Elysium wrote:
Sun Nov 17, 2019 6:12 pm
Thanks to all for confirming that. I have enough taxes and in fact was going to end up paying more estimated taxes 4th quarter like the other three before, but this might just help me reduce that payment or even completely forgo. There is even a Toyota cash rebate of $2K on the car, can you believe it :shock:

As for state, ours is a state that rejected a bill that promised $3,500 credit for EV/PHEV vehicles, go figure, but recent elections has changed control of state body which might help advance this again for future buyers.
I'll be heading to the northeast USA soon to buy another Prime to secure $4502 from feds and $5000 from CO, in addition to Toyota's $2000-3000 depending on the NE state you purchase from, as well as at least $2700 from the dealer I've contacted, AND $750 for having an active Uber driver profile (no requirement to actually drive for Uber). A total discount of about $15,000 or about half the MSRP of XLE trim. Another $500 if you were a member of teamusa . org prior to 11/1/19. Unreal :happy
Check out https://priuschat.com/threads/prius-pri ... ad.174763/
stuyguy - a huge thank you note to you for directing me to this awesome savings. :moneybag

We purchased the car today. I have been working 3-4 dealers since today morning (all through text/call), after doing all the research last night, and closed the deal tonight with the dealer who offered the lowest. Every time the deal got better between the dealers, and the dealer who I was going to go buy from originally came down another $2k overnight, after I worked out deals with 2 others.

Total savings just off of the price including upcoming federal tax credit will be over $10k on a $30k car, that's a whopping 1/3rd of the price of a brand new 2020 model car!

At this rate, I was seriously considering buying a couple more of these cars and keeping one for each family member :D

I look forward to having the experience of our first PHEV car in the coming days ahead.
I think you will never go back to full ICE again. I charge mine using 110v overnight and during the day when not in use and rarely have to use gas for local city driving. Congrats and enjoy driving in EV mode!

stuyguy
Posts: 30
Joined: Sun Sep 07, 2014 9:27 pm

Re: Plug-in Hybrid Federal Tax Credit

Post by stuyguy » Tue Nov 19, 2019 12:47 am

Elysium wrote:
Tue Nov 19, 2019 12:18 am
stuyguy wrote:
Sun Nov 17, 2019 6:54 pm
Elysium wrote:
Sun Nov 17, 2019 6:12 pm
Thanks to all for confirming that. I have enough taxes and in fact was going to end up paying more estimated taxes 4th quarter like the other three before, but this might just help me reduce that payment or even completely forgo. There is even a Toyota cash rebate of $2K on the car, can you believe it :shock:

As for state, ours is a state that rejected a bill that promised $3,500 credit for EV/PHEV vehicles, go figure, but recent elections has changed control of state body which might help advance this again for future buyers.
I'll be heading to the northeast USA soon to buy another Prime to secure $4502 from feds and $5000 from CO, in addition to Toyota's $2000-3000 depending on the NE state you purchase from, as well as at least $2700 from the dealer I've contacted, AND $750 for having an active Uber driver profile (no requirement to actually drive for Uber). A total discount of about $15,000 or about half the MSRP of XLE trim. Another $500 if you were a member of teamusa . org prior to 11/1/19. Unreal :happy
Check out https://priuschat.com/threads/prius-pri ... ad.174763/
stuyguy - a huge thank you note to you for directing me to this awesome savings. :moneybag

We purchased the car today. I have been working 3-4 dealers since today morning (all through text/call), after doing all the research last night, and closed the deal tonight with the dealer who offered the lowest. Every time the deal got better between the dealers, and the dealer who I was going to go buy from originally came down another $2k overnight, after I worked out deals with 2 others.

Total savings just off of the price including upcoming federal tax credit will be over $10k on a $30k car, that's a whopping 1/3rd of the price of a brand new 2020 model car!

At this rate, I was seriously considering buying a couple more of these cars and keeping one for each family member :D

I look forward to having the experience of our first PHEV car in the coming days ahead.
You're welcome. Glad it worked out well. The Prime is a great, reliable PHEV, and the discounts on the East coast are incredible. Which dealer did you buy from?

Topic Author
Elysium
Posts: 1851
Joined: Mon Apr 02, 2007 6:22 pm

Re: Plug-in Hybrid Federal Tax Credit

Post by Elysium » Tue Nov 19, 2019 9:51 am

stuyguy wrote:
Tue Nov 19, 2019 12:47 am
Elysium wrote:
Tue Nov 19, 2019 12:18 am
stuyguy wrote:
Sun Nov 17, 2019 6:54 pm
Elysium wrote:
Sun Nov 17, 2019 6:12 pm
Thanks to all for confirming that. I have enough taxes and in fact was going to end up paying more estimated taxes 4th quarter like the other three before, but this might just help me reduce that payment or even completely forgo. There is even a Toyota cash rebate of $2K on the car, can you believe it :shock:

As for state, ours is a state that rejected a bill that promised $3,500 credit for EV/PHEV vehicles, go figure, but recent elections has changed control of state body which might help advance this again for future buyers.
I'll be heading to the northeast USA soon to buy another Prime to secure $4502 from feds and $5000 from CO, in addition to Toyota's $2000-3000 depending on the NE state you purchase from, as well as at least $2700 from the dealer I've contacted, AND $750 for having an active Uber driver profile (no requirement to actually drive for Uber). A total discount of about $15,000 or about half the MSRP of XLE trim. Another $500 if you were a member of teamusa . org prior to 11/1/19. Unreal :happy
Check out https://priuschat.com/threads/prius-pri ... ad.174763/
stuyguy - a huge thank you note to you for directing me to this awesome savings. :moneybag

We purchased the car today. I have been working 3-4 dealers since today morning (all through text/call), after doing all the research last night, and closed the deal tonight with the dealer who offered the lowest. Every time the deal got better between the dealers, and the dealer who I was going to go buy from originally came down another $2k overnight, after I worked out deals with 2 others.

Total savings just off of the price including upcoming federal tax credit will be over $10k on a $30k car, that's a whopping 1/3rd of the price of a brand new 2020 model car!

At this rate, I was seriously considering buying a couple more of these cars and keeping one for each family member :D

I look forward to having the experience of our first PHEV car in the coming days ahead.
You're welcome. Glad it worked out well. The Prime is a great, reliable PHEV, and the discounts on the East coast are incredible. Which dealer did you buy from?
Sent PM with details.

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