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PhillipsEsq
PhillipsEsq, Attorney-at-Law
Category: Tax
Satisfied Customers: 19024
Experience:  B.A.; M.B.A.; J.D.
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I use a car managed by a fleet company as part of my

Customer Question

I use a car managed by a fleet company as part of my compensation. The new car is purchased by the fleet company and then leased back to me (the company I work for pays part of the purchase price of the vehicle and then I pay monthly for the difference + a lease rate factor). The car I'm interested in is an EV that qualifies for the $7,500 federal rebate but the fleet company keeps saying it can't apply the rebate.
I suspect the fleet company is just not really aware on how to apply the rebate / not motivated to follow thru on it.
So, the question is: Can the fleet company apply the rebate or not? The car registration clearly shows that the fleet company owns the vehicle.
Thanks,
Joao
Submitted: 1 year ago.
Category: Tax
Expert:  PhillipsEsq replied 1 year ago.

The Fleet Company cannot "apply the rebate." You need to file to claim the credit on your tax return if you qualify. For more information, click on the link below--be sure to scroll down to the area titled "Requirements... and Claiming the Credit:"

https://www.fueleconomy.gov/feg/taxevb.shtml

Kindly give a positive rating to my post so that I can receive credit for answering your question—so that part of the deposit that you already paid to the site can be transferred to me. You are not charged extra for doing this.

Thank you for your cooperation.

Customer: replied 1 year ago.
Hi,
I can't file the credit on my tax return since I'm not the owner of the car but I think the lease/fleet company could since they own the car. That's why I'm trying to understand why the fleet company says they can't.
Here's the link to the IRS link:
https://www.irs.gov/Businesses/Plug-In-Electric-Vehicle-Credit-IRC-30-and-IRC-30D
There it says: "The vehicles must be acquired for use or lease and not for resale." so it looks like the fleet company could claim the credit.
Thanks for your help,
Joao
Expert:  PhillipsEsq replied 1 year ago.

Hello Joao.

Thank you for the clarification.

The Fleet Company can apply for the credit if they want to. I do not see anything that prevents them from doing so. You may want to sent them a link on how to apply for the credit:

https://www.fueleconomy.gov/feg/taxevb.shtml

Customer: replied 1 year ago.
Hi Phillips,
Thanks for your reply.
I am sending this morning an email to the fleet company indicating them that we haven't found anything that prevents the rebate from being filed.
I will keep you posted on this subject. Thanks again for your help.
Joao
Expert:  PhillipsEsq replied 1 year ago.

You are quite Welcome Joao!

Kindly give a positive rating to my post so that I can receive credit for answering your question—so that part of the deposit that you already paid to the site can be transferred to me. You are not charged extra for doing this.

Thank you for your cooperation.