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Chevy Volt Federal Tax Credit – Form 8936 (2013 Update)

I’ve seen several new questions pop up about claiming the tax credit for any Volt purchased in 2012, So here’s my newest attempt to address the more current questions that we see popping up in the forums.  Not all are fully answered yet, but I’ll see if I can find more.

update 2/10/2013

More IRS Tax form 8936 FAQ’s – Updated with some more FAQ’s from this year that I’ve seen floating around…

Q1:  What is this manufacturer’s certification that I need to turn in?

A1:  General Motors / Chevrolet has already provided the manufacturer’s certification to the IRS, so if you input the VIN number as needed for the form, you should be fine.  This is mostly needed for small EV manufacturers.  You don’t need to do anything for this.  (I know this confuses a lot of people).

Q2:  the 2012 Form 8936 says only $2,500 rebate… huh??  I was promised $7500!

A2:  Yes, the form 8936 is very confusing.  The $2,500 rebate refers to 2 and 3 wheeled vehicles.  If you follow the instructions exactly or otherwise use tax software that supports this form you will indeed get the $7,500 tax credit, assuming that you have enough taxable income to deduct.  The Chevy Volt still qualifies for the full $7,500 tax credit and is not yet close to “phasing out”

More info on the EV tax credit here:  It’s still alive and kicking.

Example from Turbotax, though I made up the VIN.

form8936-2012-1

update 5/5/2012:

IRS Tax Form 8936 FAQ’s

Many of you have common questions about IRS form 8936, the $7500 EV Tax credit which applies for the Chevrolet Volt and other production EV’s.  While you can read the details of the questions in the post below, I tried to compile them into one section so that its easier to reference.  Keep in mind that I’m not a Professional Tax Adviser, so if there is an error let me know, but I provide this information to the best of my knowledge.  Always check with your tax adviser first if in doubt about your specific circumstance.

Q1:  Is there still money in the program?  Can I still get a $7500 tax credit if I buy a Volt today? 

A1:  Yes the Federal Tax Credit for the Chevrolet Volt is still alive and kicking!  The program starts to phase out after 200,000 Eligible vehicles per manufacturer have been claimed.  However, you need not worry if you bought Volt number 200,001 because the phase out happens starting 1 calendar quarter after the 200,000 vehicle is sold.  There’s a nice infographic on the IRS site that I’ve shown below.

Form 8936 Phase out Schedule

Check this link to the IRS Plug In Hybrids page to see when the phase outs happen.  (They aren’t close yet)

http://www.fueleconomy.gov/feg/taxphevb.shtml

 

 

Q2:  If I buy a Volt today (5/4/2012), when do I get the credit back?

A2:  You claim the tax credit on your 2012 Federal Taxes.  So you won’t see the money until you get your refund in 2013 after you’ve filed your taxes.

 

Q3:  I make $x dollars per year, have y kids, and $z mortgage, can I claim the full credit?

A3:  This is one that you really need to calculate out.  Be very careful with this as you may not get the full $7500 depending on your circumstance.  The tax credit is non-refundable and does not carry over.  Meaning you must claim it in one tax year, and you can’t carry over any benefit into future years.  IN General – if you have $7500 in tax liabilities after all your deductions, you can claim the full credit.  Someone making about $56,000 a year with only a standard deduction (no kids, mortgage etc) will generally be able to claim the full credit.  However, if you have significant deductions from kids / house, etc – you might run into trouble.  On way of doing a quick check is to see how much you owed the IRS in taxes last year (assuming this year your tax circumstances didn’t change materially).  This is not the amount you paid or got refunded, but the total tax owed.   (This is on Line 44 last year of your 1040)

If you hit AMT, sorry I can’t help you.  I don’t know nearly enough about that.  I’ll let you know when I hit AMT ;)

Q4:  What happens to the tax credit if you sell the car?

A4:  You keep it.  The first individual or company to “own and register the car” claims and keeps the credit.  The credit is only available once per vehicle to the first owner.  So if you buy a used Volt, you don’t get to claim the credit.

 

Q5:  Can I claim the tax credit on a leased Volt / EV?

A5:  No the leasing company “owns” the Volt.  They basically claim the credit and factor that into the lease payments.  You benefit from the tax credit through lower lease payments.

 

Original Post 2/26/2011:

Did you recently buy a Chevrolet Volt?  Do you pay taxes in the United States?  (Haha I know – who doesn’t?) – well if you answered yes to the previous two questions you are entitled to get $7500 back from Uncle Sam on your next tax return!  It was actually very easy to do and is supported by most common tax software.

There are a couple things that might be helpful for you to know in filling out your worksheet though and they are listed here-

  1. The model year of the Volt (2011 for right now)
  2. Gross Vehicle Weight (3800 lbs)
  3. Battery Capacity (16 Kw-H)

That’s it!  As long as you owe more than $7500 in federal taxes you’ll get that back in the form of a tax credit!  Check out the forms below for an example if you do it by hand or have any questions.  Obviously I took our my social security number from the forms – but you get the picture.

Additionally if you purchased an EV Charging Station in Calendar Year 2010, you are entitled to a 50% credit on that installation!  (Turbotax doesn’t have that readily available though, so you’ll need to manually file if you want to take that credit unfortunately.  Sorry the credit for EV charging station installation has expired as of the end of 2011 (5/5/2012 update).   

 

109 Responses to “Chevy Volt Federal Tax Credit – Form 8936 (2013 Update)”

  1. Fred says:

    Thanks for the details Patrick. How about the credit for the charger purchase/installation?

  2. Fred says:

    Minor editorial note: the title of the post contains 8963, should be 8936.

  3. PatrickZWang says:

    Thanks Fred – fixed now. The Charger Purchase Credit is on a form 8911. Unfortunately the IRS site’s link to that form is not working right now. You might try to download it through your tax software.

    • Rob says:

      Q; I have encountered a 2011 Volt being sold at a dealership used. The $7500 rebate is not being offered as the dealership already purchased the Volt and claimed the rebate. Is this legal? The Volt was only used as a dealership demo.

      • John says:

        The issue here is whether the vehicle has been registered (titled). The dealership might have titled it in order to get the rebate, then used it as a demo car. Usually, dealers do not title their vehicles, but getting $7500 tax rebate is certainly a nice incentive for them to title Volts.

  4. cederic says:

    What happens to the tax credit if you decide to sell the car?

    • PatrickZWang says:

      You get to keep it. No restrictions on how long you’ve owned the car for. Obviously the person that buys it from you doesn’t get it though.

      Patrick

  5. Glen says:

    What happens if your calculated tax before the credit is less than $7,500? Will you get a refund or loose the credit?

    • PatrickZWang says:

      The credit is non-refundable, meaning that if you owe less than $7500 in taxes, you don’t get the full benefit. Most people earning more than $55,000 a year will be able to take the full benefit though given current federal tax rates.

      Patrick

  6. Rod Grimes says:

    OH WELL
    That changed the whole picture on my purchase of a Chevrolet Volt, learning this has been a SHOCK!
    I don’t have enough income anymore to get anything back. What a RIP.
    I have a feeling that is why all of a sudden there are lots of Volt’s available as folks find out that is not a direct payment but only against the persons Income TAX.
    Rod in Simi valley, CA.
    P.S. See US Tax form Chevy Volt Form 8936 read em and weep again the wealthy get the gravy.

    • Unsatisfied says:

      I am in the same boat…the dealership straight up LIED to me and told me that no matter what I would be getting $7500 back for buying the Volt. I knew I should have read the fine print. This is GARBAGE!

  7. PatrickZWang says:

    Hey Rod,

    The only other “current alternative” to leverage the refund is doing a lease, but that has its own issues if you decide to purchase the car at the end of the lease.

    They are looking to change it to a rebate on purchase, but who knows how long that will take to get passed.

    Patrick

  8. bitguru says:

    I filled out Form 8936, the same as you. (The numbers copied from form 1040 vary, of course.)

    I just got a letter from the IRS disallowing the credit because “the vehicle must have been placed into service after December 31, 2008 and before January 01, 2010.” My vehicle was placed into service December 2010, but I thought it should qualify.

    More details at http://gm-volt.com/forum/showthread.php?7120

    • PatrickZWang says:

      Those dates sound like it was for the “older credit”. Not sure if form 8936 used to exist or if there was a mistake on their end. I just recently got the credit back (money in the bank).

      See this thread below, which seems to reference an older credit.

      http://www.irs.gov/businesses/article/0,,id=214841,00.html

      You should definitely get the money back and as its a big chunk of change, I might suggest you consult a tax pro to see what might have gone wrong.

      • bitguru says:

        I think it’s a mistake on the IRS’s part, but we’ll see if they agree. Check the gm-volt.com link above for updates if you’re curious.
        A few others, like barry252 below, have initially been denied the credit too. Others have received it fine.

  9. barry252 says:

    bitguru is not alone. I got exactly the same letter from the IRS. I spoke with three different IRS Cust SVC folks and was finally sent to “Tax Law”. The nice fellow there said that the IRS must have made an error and suggested that I resubmit my forms, explaining my position. It seems strange to have to explain the IRS regs to IRS folks. I hope to see my $7500 this year. They did, however, allow my SPX charger install credit.

  10. Howie says:

    Can I claim the $7500 tax credit on my leased Volt?

    Thanks.

    • PatrickZWang says:

      Hi Howie,

      No you cannot as the leasing company “Owns” the Volt and has taken the credit on it. (Which is why the lease is cheap)

      Patrick

      • Lisa says:

        HI Patrick,
        Can this credit be taken on a 1120S or just on a personal 1040 return?

        • PatrickZWang says:

          Hi Lisa,

          I am not familiar at all with S Corp taxes, but i know there is something in there for taking the credit as part of your business. (e.g. business can also take advantage of the credit along with individuals) How exactly, I wouldn’t know though.

          Patrick

  11. bitguru says:

    btw, I think I’m participating in a Volt focus group with you right now.

  12. PatrickZWang says:

    Hey Brian :) Nice to meet you!

  13. After reading the about info i will not be purchasing a volt since I can not get the full 7500

    • PatrickZWang says:

      That’s unfortunate Larry, have you considered a lease? That would allow you the benefit from the tax credit as well as an option.

      Patrick

      • Jim says:

        Does the Volt qualify for a credit if purchased in 2011?

        and

        If they don’t deliver into service until 2012 what is the credit?

        Thanks Patrick….

        • PatrickZWang says:

          Hey Jim,

          The Federal Tax Credit is still active – so yes you can get $7500 on a 2011. If you purchase and finalize the transaction in 2011 you can take it for the 2011 tax year. I believe this means taking delivery of the car however. (e.g. Change of ownership / title).

          Patrick

  14. tomslyck says:

    Will the tax credit still be avaiable after December 31, 2011? I think I heard California was going to add its own tax credit in 2012.

  15. Mande says:

    I keep reading about the credit phaseout. Does that mean I will not get the full $7500 if I buy a Vol today?

  16. PatrickZWang says:

    The Phase out is after 200,000 sold units, so still quite a ways to go. You can read more about it here

    http://www.irs.gov/businesses/article/0,,id=214841,00.html

  17. PatrickZWang says:

    Hey Cathy,

    The Federal Credit is still available – it would be big news to me if that’s changed. (Not to mention Volt Marketing!)

    There may be a local credit that is no longer available? Perhaps that’s what they are referring to?

    Patrick

  18. Fred says:

    We have a used Volt for sale here in Iowa. We bought it used. Is the tax credit available on pre-owned Volts? How do I find out if the credit has been used on this car?

  19. Patrick says:

    Patrick, your posts are conflicting. First you say that there’s no tax credit on a lease, the leasing company retains that, then you say you should lease to get the benefit of the tax credit as well as the option. Which is it?

    • PatrickZWang says:

      Hey there,

      The owner of the vehicle gets to take the tax credit. If you purchase, obviously you take the credit. If you lease, the leasing company takes the credit. However, you still benefit from the tax credit with a lease because the leasing terms are constructed assuming the tax credit is available. (If the tax credit went away tomorrow for example, the leasing monthly costs would be substantially higher!)

      Remember, that even though you technically don’t own the vehicle with a lease, it is really a different form of ownership. You are essentially paying for and financing the depreciation of the vehicle for the term of the lease. Think of if like a contract to finance the vehicle in its entirety for the term of the lease with an “Assumed” sale for residual value at the end of the lease term.

      There are some good resources on the web that describe the math behind leasing on the web.

      Hope that helps clarify.

      Patrick

  20. tony says:

    Pratick the federal tax credit still available for the 2012 model

  21. ERIC says:

    Does the miles exclude a person from receiving the 7500 credit? What documentation is requried for filing.

  22. bob says:

    can a dealer buy the car and take the credit and then sell the volt to me for 7500 dollars less than sticker price..?

    • PatrickZWang says:

      Hey Bob,

      If you’re in a state that collects sales tax, you’d probably eat up most of the federal tax credit double paying sales tax. So the answer is probably not a good idea (if it was even possible)

      Patrick

      • Lydia says:

        HI I am considering purchasing a used Chevy Volt but now it seems it would be better to buy anew one and get that 7,500 tax credit

        • PatrickZWang says:

          Hey Lydia,

          If you can find one used, it should probably have the value of the credit already baked in. Otherwise, yes you’d probably be better off buying new.

          Patrick

      • bob says:

        Ok..! I am a chevy dealer so will pay no PA sales tax to title the volt in the co. name
        On the tax form it says not for resale, what does that mean..?

  23. Ron says:

    Have the 200,000 sales ceiling been meet for the $7500. tax credit???

    • Doug says:

      No, they havent even sold 10,000 Volts yet, much less 200,000. The credit will be going for several years.
      One reason they arent selling well, is because most dealers sold them to an employee of the dealership, who then sold them to potential customers used and pocketed the $7500. Pretty lame huh? My wife wanted one, none of the dealers in our area would sell her a new one. She got a Prius.

      • PatrickZWang says:

        That sounds really slimey, unfortunate to hear that as I haven’t heard of any issues out here. If you are interested, you can email me some details at patrick@mychevroletvolt.com – I know a few people who might want to know that I can forward to.

        Thanks

        Patrick

  24. Dave Gorman says:

    We have a 2011 demo Volt for sale as a new vehicle. It is now 2012. Is the customer entitled to the $7500 tax credit if the vehicle is purchased and delivered in 2012?

  25. kent says:

    Can you carry forward an unused portion of the $7,500 credit. For example if This year taxes I only qualify to get $5,000 of the rebate can I carry forward the remaining $2,500 to next year taxes

  26. Brian51 says:

    I Bought one Today!! Can I Sell the Tax Credit to Someone, rather than WAIT a Year and 3 months…

  27. MikePDX says:

    So I’m about to buy a 2012 Volt. But I just found this:
    http://www.govtrack.us/congress/bill.xpd?bill=h112-3768
    If the congress shoots down this rebate during the year, and the tax incentive is dropped, do I still get my $7500 tax rebate come tax time next year?

    • PatrickZWang says:

      I suppose Congress could legislate “anything” but I doubt you have to worry this year.

      1.) It probably won’t pass house+senate
      2.) Obama wants to increase credits, so certainly look for a veto here if it even gets that far.

      Patrick

      • ScottMA says:

        The text of the bill says the tax rebate won’t apply to vehicles placed in service after the bill is passed, so even if it does pass, you are OK if you buy first.

  28. Louise says:

    I just bought a Volt th this month and love it! I didn’t research the $7500 federal rebate enough….I always get alot of money back on our taxes so I won’t owe that. How do I change everything so that I can collect my money all year and pay taxes out of pocket??

    • Denny says:

      It’s not what you pay or get back at the end of the year. It’s what your total tax liability is for the year. Example: You make $60,000.00 for the year. You’ve had $10,000 taken out of your paycheck – after all your deductions are calculated your tax liabilty ends up to be $9,000 for the year. You’ll get the $1000 you’ve over paid and you’ll get the $7,500 for a refund of $8,500.
      If your tax liability is less than $5,000 and you’ve had $6000 taken out of your check you’ll get $6,000 back.
      That’s the way I understand it.

      • Denny says:

        oops – I meant to say…
        If your tax liability is $5,000 and you’ve had $6000 taken out of your check you’ll get $6,000 back.

  29. Andy says:

    I have a Volt, want to trade or buy a 2nd one, can I get another tax credit?
    Thanks,

    • PatrickZWang says:

      Hey Andy,

      Not a CPA, but I believe credits are limited only 1 per vehicle. For example, a business buying 10 volts can get 10 credits, but you can’t buy a used Volt and get a credit twice per vehicle.

      Obviously you have to have enough tax liability to deduct to take advantage of 2 credits if its in the same tax year…

      Patrick

  30. Bill says:

    Just had my 2011 taxes done. The CPA says that because of a MAT (modified adjusted tax?) I can only get back $2200, even though I paid much more in taxes. Has anyone heard of this, or is my CPA mistaken?

    Bill

  31. Walknig Moon says:

    “Do you pay taxes in the United States? (Haha I know – who doesn’t?)”

    Nearly half of tax filers in the U.S. won’t pay federal income taxes this year. So I don’t know what you’re laughing about.

    • PatrickZWang says:

      Well many do pay taxes outside of income taxes – sales, payroll, property, you name it.

      If you aren’t paying income taxes, you are probably

      1.) Not buying a brand new car (Much less a Volt)
      2.) Dodging the Tax Man
      3.) Very creative with your tax planning.

  32. Lisa Blanda says:

    I am still very confused about the Tax Credit for the Chevy Volt. Our taxes were just completed by our CPA & since our line 46 on Form 1040 is less than the amount on line 11 of Form 8936 we do not get any of the $15,000 credit. We purchased 2 Volts in 2011 assuming we would get a $15,000 tax refund on top of what our refund already was & I guess we were just terribly mistaken. Any clarification on this. Our dealer still says we should get the $7,500 refund weather we owe the IRS taxes or not.

    • PatrickZWang says:

      Hi Lisa,

      The Credit is non-refundable. Meaning it can only take your federal tax liability for a given calendar year down to $0.

      But it shouldn’t mean that you would get nothing back from the credit unless you already don’t owe any taxes.

      Say you owed the feds $10,000 in taxes after all your other deductions, you should still be able to get $10,000 back, though not your full $15,000.

      ***normal disclaimer – not a CPA not a professional tax adviser, so I don’t know your specific circumstance.

      • Valerie says:

        I am a CPA and my father in law bought a volt last year. Your total tax for the year must be over the $7500 to get the full $7500 tax credit. That means line 46 of your 1040 must be over $7500 to get the full $7500. It doesn’t matter how much you pay in on your paycheck. Usually you have to have over $55,000 of taxable income to get the full credit. This is TAXABLE INCOME – after your deductions and after your exemptions. So, a family that has gross wages of say $80,000 but then deductions and exemptions of $30,000, may not qualify for the full Volt tax credit.

  33. John says:

    Hi! I have run across a 2011 Volt that was driven by a GM Executive. The Federal Tax Credit has NOT been used, although the car was registered and owned by GM. The dealership that purchased this vehicle through auction claims the federal tax credit can indeed be used in this instance because it has not been claimed on the vehicle. I am currently researching whether this is the case or not? I have spoken with my tax advisor and he indicates there is a chance the IRS will not issue the tax credit even though it has not been used on this vehicle. What is your perspective? Thoughts???

  34. Joe says:

    I am also looking to buy a 2011 Volt and the dealer is saying the same thing. Does anyone know if you can claim the 7500 tax credit in this situation when it has not been claimed on the vehicle?

  35. Zach says:

    I recently went into a dealer and they told me the Bank gets the credit and not the purchaser, since the bank technically “owns” the vehicle if you finance it.

    Is this true? I am assuming people on this forum have financed their volt. I think it may just be a dealer trying to get me to lease the vehicle instead of purchasing it.

    • PatrickZWang says:

      They are wrong, you get the credit if you finance (kind of the whole point). You own the car but the bank has a lien on it.

      Patrick

  36. Adrian says:

    I bought a 2011 new Leaf earlier in the year, I now would like to trade it in for a new 2011 volt. Am I eleigable to take 2 full credits, or at least enough to bring my tax liablity down to zero for this tax year?

    • PatrickZWang says:

      Hey Adrian,

      AFAIK there is no limit on the number of credits someone can take. (Think the bank which leases the Volt, or a company that buys a lot of them). However, you need to be careful with other tax issues like AMT and as you mentioned having enough tax to reduce.

      Also I am not certain about the eligibility of the 2011′s – I would imagine that there aren’t many “new” ones left on the lots? Or has this one sat somewhere?

      Patrick

      • Adrian says:

        Thanks Patrick,

        Yes it has sat on a lot but the GM drove it for a while, it has over 3k miles. They told me it has never been Titled so, it would be eligable for the credit. But you bring up a good question, do you think the fact that is sat out in the hot sun for 2 years could have negatively impacted the Chevy Volt. I know it would with the Leaf but, I heard the Volt’s battery is protected better against the elements. Is that correct? Thanks again for answering these question.

        • PatrickZWang says:

          If you can get a good price for it, I would go for it. The battery is better protected than the leaf, its warrantied to 8yr, 100k, and the Volts doesn’t use the whole battery to drive you the 40 miles. So realistically you shouldn’t see any range “degradation” for a long time.

          Remember, the Volt fights its range degradation by opening up more of the pack as it ages. GM has even said that they were too conservative with the pack “reserve” by opening up more usable range from the start with the 2013 models.

  37. glen deordio says:

    If a 2011 volt which has not been registered and used as a dealer demo was sold this year can the $7,500.00 tax credit still apply.

  38. Maria says:

    How do we go about getting a manufacturer’s certification to obtain the tax credit of up to $7500 for Fed? I purchased a 2012 Chevy Volt in June and I already got approved for the state credit of $1500. Do I need have that certification or its that something that is filled out at the time of filing my 2012 tax returns? Please advise.
    Thanks.

  39. CRDB says:

    Does the $7500 tax credit still apply? I visited the irs websites listed, the information is old. Has Chvy sold 200,000 Volts yet?

  40. Where do I find a 2012 form for tax credit on my Volt 2012? Bought it in June, 2012. Only shows 2011 form.
    Thank you for replying in advance,
    Donna Jean Messner

    • PatrickZWang says:

      Hi Donna,

      I don’t see them up yet on the IRS site either might need to wait until the new year – but the process should be the same.

      Patrick

  41. Marty says:

    I am looking at VOLTS on the GM smart auction. They are 2011 and 2012. They have not had the tax credits used. They have under 7500 miles on them. If I buy one of these cars from the auction then sell it to myself can i still take the tax credit? I do not believe that they have been titled as they are GM company cars and they state that they have not taken the credit. Could you email my answer instead of posting or both so i know you answered. Thank you very much.

    • PatrickZWang says:

      Probably need to consult a professional tax advisor on this one, most of us have only bought new Volt’s as first customers.

      Patrick

  42. Caralyn V says:

    I recently bought a 2012 Chevy Volt. It was used as a demo by a dealer and had about 2500 miles on it when we bought it. According to the dealer (not the same dealer that used it as a demo), the tax credit had never been taken, so it was still available for us to claim. The main reason we bought the certified used car over the new was because of the tax credit; otherwise, it would be more cost-effective to buy new. The dealer was never able to produce any documentation proving that we were eligible to claim the credit (he said that it would come in the mail about two weeks after purchase; it never came). I reviewed the Form 8936 and spoke to someone at the IRS (Complex Tax Law department), and it appears that we do not qualify. Could you please confirm either way whether or not we would be eligible to claim the $7500 tax credit? Thank you!

    • Caralyn V says:

      As a follow-up, the dealer has stated that the car had never been titled or registered. Thanks!

      • Jeff says:

        Caralyn, were you able to get this resolved? I have a dealer offering a demo Volt. The dealer says the car has never been titled. Trying to figure out if I’m eligible for the tax credit. Thanks!

  43. tim says:

    Is the volt tax credit available for 2013?

  44. Jared says:

    Is there a website that states if your volt credit has been claimed? I bought mine newish from a dealership which was sent to them by chevy from the voluntary recall, how do I know of the credit has been claimed?

  45. Allan says:

    Hi, this was extremely helpful. Thank you !! How do I get a 2013 form? And how do I submit early so I do not get phased out? In other words, I bought my Volt yesterday. Feb 22,2013. How can I make sure I am one that gets the credit when I do taxes a year from now? I did not even do this years taxes yet!!. Or are there more credits available than possible Vlt production?? Thank you !!

    • PatrickZWang says:

      Allan,

      Check out the phase out rules, you have more than enough time. If you buy now – you won’t be close to all the phasing out. It doesn’t matter who gets their forms in first, just when you buy the car.

      Patrick

  46. Neko says:

    Thanks to your info, I am able to submit my $7,500 tax credit. Our CPA used the wrong form (8834) and said we only qualified for $2,500. I didn’t think that was correct, so I did some searching and found this site. I was able to print out the correct forms and documents (IRS 8936, definition of slow speed car and IRS 30D) and now we are on our way for our full tax credit. Thank you!!!

  47. Jeff M says:

    All,

    I’m in a similar situation to Caralyn V above. I am considering a Volt that was purchased at auction from another Chevy dealer. The Odometer is reading 488. I understand that it must read under 500 to qualify for the federal tax credit. This may be Caralyn’s problem and was not adequately explained by the IRS.

    My volt is still on an MSO (manufactured statement of origin). To my understanding, that means it must not have ever been titled or registered by the original dealer. I beleive that I should be able to buy the 2013 volt and take advantage of the federal and california state credits.

    Am I missing anything here?

    Jeff M

  48. Michael says:

    I have been informed through my CPA that the State of Colorado decided in December, 2012 not to honor the state tax rebate. I was told this this am. I have called my dealer and Chevy Volt (who referred me to the dealer). Are there any other suggestions or is there any other recourse? I purchased in 11/2012 a 2013 vehicle after checking with my CPA (most recognized group in our area) that these tax credits were still in place. This was part of my decision making in purchasing the vehicle.

  49. Michael says:

    I would appreciate if you would remove my last name, and I realize it is a credit not a rebate and just mis-submitted. thanks

  50. Jeff W says:

    My tax guy didn’t even fill the form out since it states right in the notes section for car purchased BEFORE 2012. I went to the IRS website and downloaded the form 8936 which still says before 2012. Now what?

    • PatrickZWang says:

      Jeff,

      It’s for 2 and 3 wheeled vehicles before 2012. That’s the confusing part. You should still turn this in for the Volt (A 4 Wheeled Vehicle). Read the full attached notes in the 8936 form.

      Patrick

  51. Mike Anderson says:

    Can one contact the IRS and find out if the rebate has been taken for a given VIN?

    • Roger Anderson says:

      I spoke to a IRS agent in St Paul today 8/15/2014, she claimed the IRS does NOT maintain a database of VIN’s which received the this credit. Frankly I dont believe that. Nevertheless she could not provide ANY information at all on how to make any educated decision.

  52. Terry says:

    In a tax rebate if I pay $400 to the state and $400 to the feds how does the $7500 paid to me. Im disabled and at low income

    • PatrickZWang says:

      Terry, if you are that low – unfortunately the credit is non-refundable. Meaning if you buy the car, you will maybe get $400 back. The better option for you would be to lease so you can still take advantage of teh credit. See more about it the Chevy Volt Leasing here and how the finances work.

      • Terry says:

        According to H&R Block it is a running refund you can use year after year until the $7,500 is used up. The state of MI quit giving the the tax rebate because of our great governor decision for the peoples best interests.

  53. Naya says:

    I was looking forward to my tax credit. Bought my 2012 Chevy Volt in Oct last year with the dealership telling me I was getting the $7,500. Nope. I didn’t make enough money last year to get the tax credit. Only received $1,500. I’m VERY disappointed.

  54. Glen says:

    Patrick,
    I bought the volt, and got the full credit, but Uncle Sam has decided to audit my taxes. What a bite. I have called them three times and they say they are still looking at it. Even so they state that I get the credit. They are slower than all heck.
    I turned my taxes in before the end of feb and now it is July 23/13. Still no return. I hope to eventually get the money, as I am going to try to get the new Cadillac ELR next year. That $7500 will help buy the next one , hopefully the credit will work on the Cadillac too.

    I wonder if there are any other people with this problem

  55. Barry says:

    I have a Volt and I love it! (and no issues with range anxiety for me!) So i’m finally gettingf around to doing my tax retrun for the beloved tax credit and I’m only getting the $2,500 portion. Isn’t there another $5,000 for the increased battery capacity. The form and instructions don’t say anything about an extra $417 per kwh to get the max $7,500. The form says maximum credit $2,500. You’re example above updated 5/5/12 shows your input of $7,500 but maximum credit below at $2,500. Can you post the full form showing how you filed for the $7,500 credit? Thanks!

  56. Barry says:

    I RETRACT MY POST. I WAS FILLING OUT FORM 8834 INSTEAD OF FORM 8936. 8936 IS THE CORRECT FORM AND I’M GOOD NOW! GREAT BLOG!

  57. Rex Winthrop says:

    Lets say that my total tax liability for the 2012 tax year is 10,000. I have paid 11,000 over the course of the year through payroll deductions. Without the Volt I would receive a 1,000 refund. With the Volt purchase will I only receive my 1,000 refund because I over paid my liability or will I receive my 1,000 over payment plus the 7,500 tax credit for a total of 8,500 refund check? I am new at selling Chevy Volts and everyone at the dealership just tells people they get back 7,500 from IRS and I don’t want to mislead people if that is not the case. I have checked with a CPA friend of mine but he is not familiar with the real life application of the Volt tax credit. Any input would be appreciated .

    Signed,
    Honest Volt Salesman…
    Rex

    • PatrickZWang says:

      Rex,

      It would be the latter. Basically you can’t reduce your total federal liability below $0 for any individual year. It has nothing to do with withholdings. Assuming you don’t have any other complicating factors you would get $8,500 back.

      *disclaimer not a CPA, can’t give real tax advice so take it all with a grain of salt and read the IRS pubs for the final word.

      Patrick

  58. Thomas D says:

    Desperately trying to get an answer from GM on the $7500 tax credit on a couple of (PEP) executive driven Volts.

    GM says they are not titled yet, but they have been driven 4k miles each. I read above that the odometer cannot have over 500 miles on it or you do not qualify for the $7500, even if it hasn’t been titled in Michigan yet.

    One of the main reasons/ deciding factors for why I’m trying to big these cars is the $7500 rebates…..

    Anyone at all that can help with answering this issue would be a life saver to me. Thanks in advance!

  59. Stephanie says:

    I am considering purchasing a Chevy Volt. My husband and I need a tax credit. If we were to owe 5000.00 in taxes will taking this credit for 7500.00 result in a refund of 2500.00? Are current Volt owners happy with their purchase?

    • PatrickZWang says:

      Hey Stephanie,

      The Credit is non-refundable, meaning you would only get the $5,000 back this year. (But I think it can roll over to next year. you might read into the fine print and see if that’s the case) If that doesn’t work, you might think about leasing as you’d capture the full value of the tax credit.

      Keep in mind I’m not a CPA or qualified tax adviser.

      3 years strong with my Volt :)

      Patrick

  60. Paul Davidson says:

    Great article. Thanks for the info, you made it easy to understand. BTW, if anyone needs to fill out a form 8936, I found a blank form here http://goo.gl/IKF5te. This site PDFfiller also has some tutorials how to fill it out and a few related tax forms that you might find useful.

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