Section 1.25E-0 - Table of contentsThis section lists the captions contained in §§ 1.25E-1 through 1.25E-3.
§ 1.25E-1 Credit for previously-owned clean vehicles. (b) Definitions. (1) Advance payment program.(2) Credit transfer election.(4) Dealer tax compliance.(8) Incentive. (i) For purposes of sale price.(ii) For purposes of eligible entity requirements.(9) Modified adjusted gross income.(11) Previously-owned clean vehicle.(13) Qualified manufacturer.(17) Section 25E regulations.(20) Vehicle history report.(c) Limitation based on modified adjusted gross income.(3) Special rule for change in filing status.(d) Credit may be claimed on only one tax return. (e) Examples. (1) Example 1: First transfer since enactment of section 25E.(2) Example 2: Multiple transfers since enactment of section 25E.(3) Example 3: Multiple transfers; commercial purchaser.(4) Example 4: Multiple transfers; buyer exceeds modified adjusted gross income limitation.(5) Example 5: Multiple transfers; buyer elects to not take credit.(6) Example 6: Multiple transfers; sale between dealers.(f) Reliance on vehicle history report for purposes of determining whether sale is a qualified sale.§ 1.25E-2 Special rules. (b) No double benefit. (2) Interaction between section 25E and 30D credits.(c) Recapture. (1) In general. (iv) Other returns and resales.(2) Recapture rules in the case of a credit transfer election.(3) Example: Vehicle return.(f) Requirement to file income tax return.(g) Taxpayer reliance on manufacturer certifications and periodic written reports to IRS.§ 1.25E-3 Transfer of credit. (b) Definitions. (1) Advance payment program.(2) Credit transfer election.(3) Dealer tax compliance.(c) Dealer registration. (2) Dealer tax compliance required.(3) Suspension of registration.(4) Revocation of registration.(d) Credit transfer election by electing taxpayer.(e) Federal income tax consequences of credit transfer election. (1) Tax consequences for electing taxpayer.(2) Tax consequences for eligible entity.(3) Form of payment from eligible entity to electing taxpayer.(4) Additional requirements.(5) Examples. (i) Example 1: Electing taxpayer's regular tax liability less than amount of credit.(ii) Example 2: Non-cash payment by eligible entity to electing taxpayer.(iii) Example 3: Eligible entity is a partnership.(f) Advance payments received by eligible entities.(2) Requirements for a registered dealer to become an eligible entity.(g) Increase in tax. (1) Recapture if electing taxpayer exceeds modified adjusted gross income limitation.(2) Excessive payments. (iii) Excessive payment defined.(iv) Special rule for cases in which electing taxpayer's modified adjusted gross income exceeds the limitation.(3) Examples. (i) Example 1: Registered dealer is not an eligible entity.(ii) Example 2: Incorrect manufacturer certifications.(i) Two credit transfer elections per year.