Does anyone know what is considered the sales price for the used EV tax credit? Would that include sales tax and other fees?
IRS: "If you buy a qualified used electric vehicle from a dealer for $25000 or less..." Sales tax is in addition to the sale price. The car dealer lobby clearly got their way with this part of the IRA legislation. Unfortunately, car companies have to register specific cars to qualify--Honda hasn't done this with their Clarity PHEV.
It is possible to get the used EV tax credit when buying from a private party as well. Full disclosure, I'm one of the co-founders of KeySavvy and we make this possible. We're a licensed dealership, but we use our license to facilitate private party transactions. One benefit of our service is enabling buyers to claim the used EV tax credit for eligible vehicle purchases. We report EV sales to the IRS just like any other dealer, but you get the benefits of a lower private party sale price.
According to the IRS: Do you make people dealers like internet sites help people become clergy to perform weddings? Have you successfully made this happen yet?
We buy the car from the seller and sell it to the buyer, just like a normal dealer. The difference is that we do both of these transactions at the same time. This allows us to do other cool things as well, like pay off loans, issue temporary permits, and access data that helps us verify vehicle ownership. And yes, we’ve done many EV sales to help people access this tax credit!
