Short answer is no.
Tax credit is only available on new (untitled) cars. With free trade individuals are not allowed to import new cars into Canada. Used cars are Ok and there is a brisk import business. If a car has already had the tax credit taken it is considered a used car. Most Canadians would not want to file a US tax form to try and get the credit. For one thing you would need US income or residency. The tax credit can only be used to reduce US tax obligation on a US tax form

 

He buys the car in December, and hangs on to it for a few months until he gets the tax credit, then sells it to me.

You know, that's explicitly against the rules - just sayin'.

The vehicles must be acquired for use or lease and not for resale. Additionally, the original use of the vehicle must commence with the taxpayer and the vehicle must be used predominantly in the United States.

http://www.irs.gov/Businesses/Plug-In-Electric-Vehicle-Credit-IRC-30-and-IRC-30D

 

You know, that's explicitly against the rules - just sayin'.

http://www.irs.gov/Businesses/Plug-In-Electric-Vehicle-Credit-IRC-30-and-IRC-30D

They have to catch you at it first. If you're big on following rules..... otherwise you can take your chances.

The link that Mister Dave posted doesn't specify any sort of time frame....

It doesn't. I tell you so that you're aware, not as a warning of impending tax doom.

If you want to be sure ask someone with the authority to provide an authoritative answer, eg, Canadian tax official. Even then, if they are anything like the IRS, you might not get the right answer.

If they're anything like the IRS you may get no answer at all. IRS is a bit overwhelmed right now and for the foreseeable future. Remember, they have that new health care law to keep track of too.

 

Actually I believe a another question was brought up that might answer your question.

If a person buys a Volt in the US and claims the tax credit how long must the hold the car so as not to constitute resale?

With that question the tax credit is more of a benefit to offset the depreciation of the original buyer. If it's a legitimate used Volt then any credit's that were applied in it's original purpose won't matter as they only benefit the original owner. You should be able to import it to Canada with no issues.

That would be like saying what if you bought my Volt? Would you then owe the Ontario government the $8231 rebate I got when I purchased my car. No definitely not. But in order to claim the Ontario government rebate I cannot sell my car for one year (pending other circumstances).

I'm not sure of the US rules but below is the Ontario rules. I would imagine the rules in the US are something similar.

To receive a rebate, your vehicle must remain plated, registered and insured in Ontario in your name for at least 12 months.

 

I realize that it applies only to new vehicles. If my friend purchases the vehicle first, drives it for a six months, then sells it, it would be a used vehicle, would it not? The link that Mister Dave posted doesn't specify any sort of time frame, unlike the California rebate which states a time period of 30 months. Since no time frame is specified, what happens if I purchase a Volt that is two years old, that someone purchased new, and applied for the tax credit? It'd definitely be considered a used vehicle by that point. I'm partially asking out of curiosity, and I'm also wanting to make sure that I'm not going to have to pay a $7,500 bill if I do decide to import a Volt (especially if it is several years old, and high mileage).

 

...and I'm also wanting to make sure that I'm not going to have to pay a $7,500 bill if I do decide to import a Volt (especially if it is several years old, and high mileage).

If you want to be sure ask someone with the authority to provide an authoritative answer, eg, Canadian tax official. Even then, if they are anything like the IRS, you might not get the right answer.

KNS

 

I live in Alberta and last year i bought my use volt 2013 in chicago . All you have to paie is the 5% fed tax and aound 500$ of fee plus alberta inspection. The exchange rate when i did it was around 95% so i made a good deal, at 80% i am not so sure it will be a good one. Plus if you take an extended warranty it cost around 3000$ in canada, they are real thief.

 

The way I see it, since you have no interaction with the IRS there's no way the $7500 US tax credit can affect you. It's a credit, meaning the worst Uncle Sam can to is take it back (meaning a person would pay more taxes, but you're paying none) They can't nail the next owner of the vehicle for it, only the original American owner who claimed the credit.

 

The $7,500 credit has nothing to do with you, don't worry about it. You're just buying a used car for whatever you pay for it, and then taking it to Canada. Leaving aside doing a deal with a friend (which might get you grief), just buy a 1 or 2 year old Volt from a third party at the market price and drive it home. The $7,500 credit has artificially depressed used Volt (and Leaf) prices, a big factor in the recent discussion about heavy depreciation on EV's. The $7,500 impacts the net price of new Volts, meaning that used Volts also have that built into their pricing (as otherwise you'd buy new). True depreciation is from the net price after the tax credit, not from MSRP.

 

Best way to buy a Volt from the US and take it to Canada is buy a used one. Easy import and no tax credit issues. Can be had for $18K USD, or $20K CAD, roughly.

 

Re: Ontario

Bah, I just noticed how many replies there were on this thread!

That's definitely an interesting case - buying a Volt in Ontario. I managed to find details about the California rebate, but nothing about the U.S. federal rebate. I hadn't really considered buying a Volt in Ontario, simply because of the PST (we only have GST out here), although there are more of them out that way. Thanks for finding that!

 

Interesting! I think I've only seen two other Volts here in Lethbridge. I'm glad to see I'm not the only one who has thought about importing one. One of the things I'll have to be careful of is checking if it is a California car. If it is, it'll have to be at least 30 months old, otherwise I might get dinged when I bring it up, as near as I can figure.

 

Dave - I appreciate the reply. Knowing the IRS, if they need to get a hold of you, they will!

Gotta love tax season. The one time a year I'm glad I'm not an accountant...

 

It shouldn't be you that is dinged, you did not sign a contract specifying a specific time period of ownership. The previous owned did.

 

That's exactly what I'm thinking. I've got a friend who has access to the dealership auctions. There's been a few particularly cheap Volts go through - high mileage ones. I suspect it could be a few of the ex-GE ones, given the mileage on them. That being said, I wouldn't be against paying a few thousand more for something a bit newer/less miles.

Now one of the other things I will need to look into is doing a daylight running lights conversion. I see plenty of vehicles up here that have been imported without having proper daytime running lights, which technically makes the vehicle in violation of Canadian law. I don't want to be one of those people. So far it looks quite easy: http://gm-volt.com/forum/showthread.php?8106-Turning-DRL-on-and-off-coding-problems

 

Good point. Especially if I'm buying the vehicle at an auction, wouldn't I technically be the 3rd owner (the first owner being the person who initially bought it, the second being the auction that bought it, then me)?

 

No, the auction won't title it.

You should give Bourgeois Chevy a call/email in Rawdon, QC. They specialize in Volts. They bring stock in from across Canada and import from the US. They sell Spark EV, too. They had 26 used Volts when we were shopping. They are also experienced with selling to out of province buyers.

However, if you want to bring one up from the US, it's not a complicated process. I've brought a couple of cars up, you just need to do your homework and follow the steps. It has to be at least a few thousand less expensive in the US to make it worthwhile.

 

#1 - No, OP would not be affected by the Federal tax credit if he purchases a used Volt in the US. It's actually a great idea, because used Volt prices are dramatically deflated because of the tax credit (among other things).

#2 - It's not "explicitly" against the rules to buy a Volt, take the tax credit and then sell it. The IRS regulations address intention. You can't take the tax credit if you purchased the Volt with the intention to resell it. If you bought it with the intention of driving it, then had to sell it for some personal reason, you're not violating the IRS regulations. In order to ding you, the IRS would need some sort of proof that you purchased the car with the intention to resell it (like a contract that predates the purchase, or a pattern of buying and selling). However, many States that offer a rebate or incentive have a specific length of time for which you must keep the car.

 

Right - it'd make sense that the auction wouldn't title it.

I took a quick look at Bourgeois' inventory. The lowest price Volt they have is around $22k. The lowest price one I've seen in Alberta is ~ $24k. If I am able to get the kind of deal that my friend told me about, I could likely get a Volt for < $14k USD (~$18K CAD), plus import fees, etc. It still looks like it'd be cheaper to go that way. Plus, I'd have to pay PST on anything from Bourgeois. I did read an interesting news article about them though, how they were doing very well at selling Volts. I think that's great. Most people around here, if I mention the Chevy Volt, they give me a puzzled look. Local dealers here don't even have it listed as a potential model in their inventory.

 

Tony: I'd rather not run afoul with the IRS. I've decided against buying new for that reason. Not only that, but I'd personally feel bad about it. the U.S. isn't in the greatest financial shape, and I wouldn't want to abuse the system. There's a lot of people there that could use the money more than I could.