Major mistake by (CPA!) with Commercial Clean Vehicle Tax Credit

[Aleks]

I just got a message back from my accountant and the IRS rejected the form you mentioned above because the VIN didn’t match up with the IRS database.
The instructions specifically say the dealer must report the VIN to the IRS.

Question 5:

Does the VIN entered on line 2 belong to a new clean vehicle placed in service during the tax year? THE ANSWER IS UNBELIEVABLY NO!!

Question 7:

Does the VIN entered on line 2 belong to a qualified commercial clean vehicle acquired after 2022 and placed in service during the tax year? THE ANSWER HERE IS YES!!

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[mongo]

Does the VIN entered on line 2 belong to a new clean vehicle placed in service during the tax year? THE ANSWER IS UNBELIEVABLY NO!!

Not unbelievable, just confusing
"New clean vehicle" is the 30D credit
A 'new, clean vehicle ' is a general description

 

[Aleks]

Not unbelievable, just confusing
"New clean vehicle" is the 30D credit
A 'new, clean vehicle ' is a general description

Pretty unbelievable to me because it is a new clean vehicle and to answer no seems ridiculous, hence why this is such a major point of confusion

 

[mongo]

Pretty unbelievable to me because it is a new clean vehicle and to answer no seems ridiculous, hence why this is such a major point of confusion

You're not wrong, but CPAs are paid to know this stuff. The formatting of the form wording could have been better. Or lead with the commercial vehicle question.

 

[Aleks]

Yeah well I had to drag my CPA kicking and screaming just to even try this... and based on all the people with issues, many CPAs all over the country are not digging deep enough.

The question could have simply been: is this VIN number belong to a NON-Commercial clean vehicle for question 5 and it would have made sense to a lot more people.

You're not wrong, but CPAs are paid to know this stuff. The formatting of the form wording could have been better. Or lead with the commercial vehicle question.

 

[ericr70]

Your accountant is doing the 8963 schedule A wrong
Question 4a is No
5 is No
6 is No
7 is Yes, jump to Part V
Parts 2-4 (II-IV) stay blank

Thanks for all of your help.
what is line 23 incremental cost of the vehicle? I read the instructions, it’s confusing.

 

[mongo]

Thanks for all of your help.
what is line 23 incremental cost of the vehicle? I read the instructions, it’s confusing.

Yeah, that's the difference in price between your EV and a "comparable" ICE vehicle.
Federal guidance puts the safe harbor number way above the $7,500 max credit, so actual value is irrelevant. Just use $7,500 (or higher).

https://www.irs.gov/irb/2024-02_IRB#NOT-2024-5

For all street electric vehicles (other than compact, including minicompact and subcompact, car PHEVs) with a gross vehicle weight rating of less than 14,000 pounds, the results of the DOE Analysis lead the Treasury Department and the IRS to conclude that incremental cost will not limit the available § 45W credit amount for such vehicles placed in service in calendar year 2024. Accordingly, the IRS will accept a taxpayer’s use of $7,500 as the incremental cost for all street electric vehicles (other than compact, including minicompact and subcompact, car PHEVs) with a gross vehicle weight rating of less than 14,000 pounds to calculate the § 45W credit amount for vehicles placed in service during calendar year 2024.

 

[Aleks]

Thanks for all of your help.
what is line 23 incremental cost of the vehicle? I read the instructions, it’s confusing.

Best we could come up with is either $18,800 if you use the 2025 incremental cost table that says 2024 somewhere in the chart but unclear if it applies to 2024, OR it is $19,500 if you use the previous 2022 table.

Either way best we know either number will work because what matters is that it is above $7,500 or it will reduce the tax credit amount and both tables are way above so it shouldnt matter much.

 

[ericr70]

Your accountant is doing the 8963 schedule A wrong
Question 4a is No
5 is No
6 is No
7 is Yes, jump to Part V
Parts 2-4 (II-IV) stay blank

Can you or Aleks check these forms over before I send them to my accountant?

 

[Aleks]

Can you or Aleks check these forms over before I send them to my accountant?

Disclaimer: I am not accountant and this is not official tax advice.

That said it looks pretty good to me, and made me realize I think i got my GVWR wrong on mine since I have the core wheels, you look like you got it right. Oh well hope its fine. Also consider section 179 bonus depreciation to lower your tax liability further if necessary.

Also make sure you fill out form 3800 line aa as instructed in Part V of form 8936

 

[mongo]

Disclaimer: I am not accountant and this is not official tax advice.

That said it looks pretty good to me, and made me realize I think i got my GVWR wrong on mine since I have the core wheels, you look like you got it right. Oh well hope its fine. Also consider section 179 bonus depreciation to lower your tax liability further if necessary.

Also make sure you fill out form 3800 line aa as instructed in Part V of form 8936

No worries, GVWR only matters if it's 14,000 or higher. That unlocks the $40k credit.

 

[Aleks]

Can you or Aleks check these forms over before I send them to my accountant?

Just got my refund in the bank! Everything seemed to work out well! Thanks alot to Mongo!!

 

[BlueLightning]

Hello everyone I've been doing alot of research on why the IRS rejected my commercial clean vehicle tax credit filing for my 2024 Non Foundation Cybertruck.

Turns out Tesla failed to file with the IRS ECOS online portal at the time of sale, likely thinking they didn't need to since it didn't qualify for the personal tax credit, turns out the IRS needed that for any type of tax credit and now tax returns are being rejected by the thousands for CTs and other EVs where dealerships failed to do this.

This is a major mistake because currently the software does not allow filing for this more than 5 days back from the current date and this was supposed to be filed within 3 days by Tesla.

If you were unable to get a commercial tax credit through form 8936 or 8300 which the 2024 cybertruck DOES qualify for, this is because Tesla made a major mistake!

There maybe some type of solution coming from the IRS on this and some people have had success by having their dealer enter the sale date as the current date and the placed in service date as the actual sale date back in 2024.

All of us with commercial cybertrucks need to talk to Tesla to push for a solution, we are supposed to get $7,500, so it's no small issue!!

https://www.npr.org/2025/02/28/nx-s...uDtqk15nGADtH5rriQ_aem_LrWDKmHnhIpOBPjqMg-saQ

https://www.wral.com/consumer/5onyo...oRSn0gR7vICO5VyQbA_aem_u7wpbaF-QU54sZJcVUodgg

It wasn’t a mistake, Tesla knew exactly what they were doing, look what they did in Canada.

 

[mongo]

Just got my refund in the bank! Everything seemed to work out well! Thanks alot to Mongo!!

Excellent! You know what to do now...

If this goes through we should change the subject to major mistake by CPA, there is several others on facebook that are dealing with this exact issue, it would be great to get to the bottom of this.

 

[Aleks]

Excellent! You know what to do now...

Thanks for the reminder, I at first thought an admin was necessary to change the subject line, but I got it done!

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