Commercial Clean Vehicle Credit for Single Member LLC?

[elonmu5k]

Hi,

I have a single member LLC with the S Corp election and have a delivery date next week for my 79k Non-FS Cybertruck AWD. I'm wondering if I can qualify for the IRS 45W / Commercial Clean Vehicle Credit by purchasing it through my business. Whether I buy it personally or through the business, I will be wrapping it for my business/using it for business. Anyone have experience with this?

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[ehua329]

The business tax credit is non-refundable that means you must first have enough tax owed to IRS and then offset it by at most 7500. If this is you, then it might be a good arrangement. The usual tax credit for consumers are out-of-pocket saving and is a different case. The cybertruck does not qualify for consumer EV IRS tax credit at the moment, looks like due to the battery sourcing from China. It is unclear when it can become eligible. However, Tesla must be well aware of this because IRS rule for qualification for 2024 was published in late 2023.

The fact that on the website it used to say "CT is likely to be eligible for 7500 EV credit for consumer" tells me that they had a supply chain solution to deal with the Chinese sourcing restriction, but implementation of that plan may have been delayed; and now the website doesn't mention about it any more ... I believe the EV credit may come out in 2025.

 

[carsly]

Not sure about CT but in NJ, and generally, business vehicles need to be titled and registered to the business and also require commercial auto insurance. YMMV

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