Transferring a Clean Vehicle Credit May Increase Your Tax Benefit

Starting in 2024, eligible taxpayers can transfer their Clean Vehicle Credit (CVC) to a dealership, using it as a down payment or in exchange for a discounted purchase price. This applies to many electric vehicles (EVs), plug-in hybrids (PHEVs), and fuel cell vehicles. The transfer option may provide a larger benefit because CVCs are non-refundable—meaning that if your tax liability is lower than the credit amount, you don’t receive the full benefit. Transferring the credit to a dealer can ensure maximum savings. A tax professional can help determine if this option is right for you.