IRS Notice CP99D & Clean Vehicle Credit Explained

The Inflation Reduction Act (IRA), signed in 2022, provides up to $7,500 in federal tax credit for certain electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs). Starting January 1, 2024, individuals may transfer their tax credit to participating dealers to see the credit as a discount applied immediately at checkout.

This transfer of credit does not necessarily mean you are eligible for the credit, however. In certain cases, you may have to repay the credit. You will likely receive IRS Notice CP99D via mail or IRS online portal.

• Form 8936: You must file Form 8936 and Form 8936 Schedule A along with your regular tax forms, such as Form 1040.
• Income Limit: If your AGI (Adjusted Gross Income) exceeds the threshold for both tax years 2023 and 2024, you may be ineligible for the credit. View AGI threshold

Why did they give me $7,500 off when I was actually ineligible?

When purchasing the vehicle, some individuals may not have known their 2023 AGI (e.g., bought the EV before filing taxes early in the year). Others may have projected their 2024 AGI to be below the threshold when their 2023 AGI was above. In these cases, they may have chosen to get the credit at point of sale regardless.

If my AGI is above the limit, do I get nothing?

If you use your EV for business purposes, you may be eligible for the $7,500 Commercial Clean Vehicle Credit. This also benefits EVs not eligible for the regular Clean Vehicle Credit due to cost or battery component requirements (e.g., Tesla Cybertruck). Learn More about Commercial Clean Vehicle Credit

Your IRS Notice CP99D can save you more money.

Get 30% off for individual tax filing with Copper River Tax.

Copper River Tax supports the mission to accelerate the transition to sustainable transport. To show our appreciation, we offer a significant discount to those who purchased EV in 2024. Use your IRS Notice CP99D as your discount coupon at Copper River Tax. If you or your joint-filing spouse received multiple IRS CP99D notices under your names, the discount is stackable. Business customers or fleet EV owners may also qualify. *Subject to terms and conditions.