I’m a little confused on the electric vehicle tax credit. I’m filling out Form 8936 and it appears to have a maximum credit of $2,500. However, I am reading that the maximum credit is $7,500 if your tax/AGI meet the criteria which it does in this case. What am I missing here? The form clearly shows $2,500 so where is the $7,500 coming from? Also, is there carryover to next year’s return if all of it isn’t use? Looks like maybe form 8834 if I’m reading it correctly?
Thank you.
Think it depends on the car, the credit gets reduced the more a certain car is purchased each year
It depends on make and model of car. Not all get $7,500 credit. When the cap is met, you no longer get the credit. For example, you would not get credit for Tesla as the cap has been met since 2020. Each year the IRS provides this info and the amount of credit for each make of vehicle. This is under code IRC 30D
I understand that. I’m saying the form itself limits it to 2,500 so not sure how you can get 7,500 unless you have 3 cars. That’s the part I’m confused about.
Mentor
Why do you think it is limited to 2,500?