Why is the dealership saying my car doesn't qualify for the used EV tax credit

https://www.carfax.com/vehicle/KNDC4DLC2N5042064

Not sure how this car wouldn’t qualify. It’s had one owner, it’s under $25,000, and I qualify financially.

It definitely qualifies. They just don’t want to do it. I bought a used EV6 myself and had to deal with a similar situation. Some dealers weren’t familiar with the credit, while others claimed they didn’t qualify for one reason or another. Other times, the car was priced just below $25k, but after dealer fees, it went over the threshold. I ended up finding a dealer who knew about the credit and lowered the fees to make it work.

@Sam
Do you need the dealer to process the refund or can you apply for the credit when you file taxes?

Reese said:
@Sam
Do you need the dealer to process the refund or can you apply for the credit when you file taxes?

The dealer has to submit it through an IRS portal within 72 hours after the sale and provide you with the receipt. Without this, you can’t claim the tax credit when filing your taxes.

@Gerald
Yes, it used to be possible to do it yourself, but now the dealer must do it for you as part of the sale. You also need to file the correct forms during tax season.

Reese said:
@Sam
Do you need the dealer to process the refund or can you apply for the credit when you file taxes?

I think the vehicle must come from a ‘qualified dealer.’ Even if you don’t get the credit up front, the dealer still has to do some paperwork.

I found a link on the IRS website: Federal Tax Credits for Pre-owned Plug-in Electric and Fuel Cell Vehicles
Unfortunately, for the 2022 EV6, it’s up to the dealer to decide whether it qualifies since some versions don’t.

One owner, low price – yes, it should qualify. Here are some links you can check out:

I had to help the dealer set up their ECO account and teach the management about POS credits. They didn’t sell many EVs and were completely unaware of it. But, they accepted advice from the IRS website and got everything set up so they could close more deals.

@Noelani
Can you share any resources that helped you guide them?

Steele said:
@Noelani
Can you share any resources that helped you guide them?

Here’s the link from the IRS on registering your dealership: Register your dealership to enable credits for clean vehicle buyers | Internal Revenue Service. It was pretty easy to walk them through it step by step.

Does this dealer include about $1,600 in fees that push the price above the $25,000 limit?

Skylar said:
Does this dealer include about $1,600 in fees that push the price above the $25,000 limit?

Probably, that’s why I asked them for clarification on why it didn’t qualify.

Luckily, there are many dealers around. As soon as you get any pushback, just move on to the next one.

Sam said:
Luckily, there are many dealers around. As soon as you get any pushback, just move on to the next one.

That’s the worst comment here. You act like it’s easy to just move on. Dealerships are intentionally making it difficult for consumers with their incompetence and greed.

Ridley said:
[deleted]

That rule only applies to the tax credit for new vehicles under 26 USC Section 30D. For used vehicles, the tax credit under 26 USC Section 25E doesn’t have this requirement.

The final assembly has to happen in North America. This vehicle’s VIN starts with a K, meaning it was made in Korea, so it doesn’t qualify.

Ember said:
The final assembly has to happen in North America. This vehicle’s VIN starts with a K, meaning it was made in Korea, so it doesn’t qualify.

I thought the country of origin rule only applied to new cars.

@Steele
That’s correct.

It’s not about the age or cost of the car, it’s that Kia wasn’t included in the tax credit until the 2025 model year.