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pkb2456
July 8, 2024
Question

Federal EV Incentive used as down payment

  • July 8, 2024
  • 1 reply
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What type of account would I use to record a Federal EV incentive used as a down payment on a Tesla?

1 reply

Rainflurry
Rainflurry
July 9, 2024

@pkb2456 

 

The EV tax credit reduces the depreciable (fixed asset) basis of the vehicle as recorded on your balance sheet.  If the vehicle cost was reduced from $50K to $42.5K as a result of the tax credit, the fixed asset amount on your balance sheet should be $42.5K, not $50K.      

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