New Prime purchase. About the federal rebate

Discussion in 'Prime Main Forum (2017-Current)' started by Matt1984, Nov 11, 2019.

  1. Matt1984

    Matt1984 New Member

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    Hello, happy to be a part of the site! I got a 2020 Prius Prime LE yesterday. The dealer was not very clear about the rebate process. I got the California rebates processed this morning. I have a question about the federal process. For form 8936, do I process that at the time of next year's tax filings? The dealer insisted I did everything immediately because he says funds are limited. I filled out the form but am unclear of what to do next. Thanks for your help!
     
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  2. bisco

    bisco cookie crumbler

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    yes, you complete it along with the rest of your 2019 return by 04/15/20

    no, they won't run out of funds
     
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  3. huskers

    huskers Senior Member

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    Congrats !!!!!!!! PRIME ON !!!
     
  4. Matt1984

    Matt1984 New Member

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    You guys are great. Thank you! :)
     
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  5. PiPLosAngeles

    PiPLosAngeles Active Member

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    Just be clear about the difference between a credit and a rebate. The Federal program is a credit. A credit means it reduces your tax liability, but they aren't going to cut you a check if your total Federal income tax liability is less than the rebate. If your total Federal income tax for 2019 is $1,000, you only get the $1,000 back.
     
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  6. kepani

    kepani Junior Member

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    Congratulations! Thanks for your post earlier! Like everyone is suggesting, get on those credits and rebates. These make a great car even greater! :)
     
  7. Mikhail Bond

    Mikhail Bond New Member

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    do you get the federal credit if you buy a used prime?
     
  8. Mikhail Bond

    Mikhail Bond New Member

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    I guess ill answer myself.
    You don't get a federal tax credit if you buy a used EV.
     
  9. yaun

    yaun New Member

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    It only applies to new car purchases.

    And it looks like the IRS has started to check VINs. Quite surprising that they didn't do that from the start: IRS Fails To Stop Electric Car Tax Credit Cheats
     
  10. PT Guy

    PT Guy Active Member

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    "It only applies to new car purchases."
    Yep, only the original buyer gets the federal tax credit. This includes leases. The leasor (bank or finance company) is the buyer, so they get the credit. If you're a tough negotiator, try to get the amount of the credit ($4502) on the "capital cost reduction" line of the lease agreement, just like reducing the negotiated price that much more.
     
  11. LoganNolag

    LoganNolag Junior Member

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    Wait does that mean you also only get the tax credit if you buy the car outright without a loan?
     
  12. fotomoto

    fotomoto Senior Member

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    How can you tell a dealership isn't telling the whole truth? Their lips move. ;)



    No, the credit goes to the loanee not the loaner; just like a home mortgage deduction does not go to the bank/mortgage company. Leasing (renting) is a different animal. Some apply the credit to the deal that results in very attractive terms (usually to move a slow seller or generate more manufacturer credits) but most do not and pocket the money themselves.

    State laws OTOH vary. For instance here in Texas, leasing qualifies for the state's $2500 credit.

    Not entirely true. There are limits that both Tesla and GM are reaching; Toyota and others are behind so there is no concern ATM which is what I assume you are referring to. The program can be altered by the Fed's at any time.
     
  13. Salamander_King

    Salamander_King Senior Member

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    You can finance the purchase and still get a full credit on the tax year you purchased the car. You don't have to pay cash or pay off the entire loan to be eligible for the federal credit. @PT Guy just means if you are leasing a car you do not qualify for the federal credit, since it is not a purchase. Technically speaking leasing means you are just renting the car.
     
  14. LoganNolag

    LoganNolag Junior Member

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    Ok that's what I thought. The other post just made it sound like you only get the credit if your the owner and I was under the impression that when you finance the bank is technically the owner until you pay it off.
     
  15. Salamander_King

    Salamander_King Senior Member

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    Difference between leasing and financing purchase is that, for a leased car you never have your name on the title of the car. You are not the owner of the car period. For the financed purchase, technically, you are the owner of the car but the bank has a lien on it. They will hold onto the title paper with your name as an owner until owed money is paid off. As far as the federal credit is concerned, it doe not matter if you financed the purchase or paid cash for it.
     
  16. Marine Ray

    Marine Ray Active Member

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    Welcome Prime mate.
    20190726_185018.jpg
     
  17. PT Guy

    PT Guy Active Member

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  18. AJDL

    AJDL Junior Member

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    Quick question, if I bought the Prime in 2017 and already got the credit once, and now I am buying another Prius prime 2020, I can get the credit again correct? Because it is per car?
     
  19. Salamander_King

    Salamander_King Senior Member

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    Correct. You can get as many times as you buy qualified EV, as long as you have enough tax liability for that tax year.
     
  20. mister2cool

    mister2cool Junior Member

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    So if I got a new Prime... traded it in for a new Tesla.. then traded it in for another new Prime.. all in one year. How many credit can I apply? o_O

    Someone ask me that question, I had no idea how to answer..
     
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