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There was discussion of how one must keep the car for some period of time to claim the entire Federal income tax credit.

That being said - if someone were to sell their Prius before they could claim the full credit, would a subsequent owner be able to claim the remainder of the credit? Or would it simply "disappear"?

Thanks,

No longer a wannabee
 

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I believe the seller would be responsible to reimburse the IRS if the vehicle is sold before 3 years. The buyer gets nothing. You can search for info on this on the IRS website.

Check page 46 of the IRS document http://www.irs.gov/pub/irs-pdf/p535.pdf which describes "Recapture of the Deductions". It describes the 3 year ownership (I think). It's written in IRSese.
 

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I am not so sure the recapture clause is specifically for resale only. From the wording, it only needs to be recaptured if you have reason to know that the car will be altered that it otherwise would not qualify for the deduction.
 
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