New year, new rules. The clean vehicle credit (used for business purposes) is new for 2024, so you’re going to need all the information you can get to provide quality service to your clients. Because the credit is new, you need up-to-date, accurate resources that may otherwise be hard to find.
Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.
Q: Are there partial credits? If a car cost $60,000, would they only get $55,000 worth of credit, or is that $55,000 threshold a drop off and no credit?
A: No partial credit, it’s an all-or-nothing deal. You can’t buy a $110K sports car and then claim the credit based on the portion of the MSRP under the $55K limit.
Q: Is Form 15400, Clean Vehicle Seller Report, used by the seller to report sale to IRS/buyer?
A: That is correct. Sellers/dealers of clean vehicles are required to report information related to the sale to the IRS and buyer using the form.
Q: What if a vehicle was used for both Schedule C business and personal? How does this affect the credit?
A: According to Prop. Reg. 1.30D-1(b), if 50% or more of a vehicle’s use is business-related, the credit can be claimed by the business. However, if it’s less than 50% business use, it must be apportioned between the business and individual.
Q: How do you know if a home qualifies for the alternative fuel vehicle refueling property credit?
A: It has to be in a low-income or rural census tract. You can look up specific communities on the Department of Housing and Urban Development website.
To learn more about understanding clean vehicle credit and business use, you can watch our on-demand webinar. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial at natptax.com/explore.
