Revised September 17, 2026
XIII.i.2.A.1.aEligibility Requirements for Automobile Allowance
To be eligible for financial assistance in purchasing a new or used automobile (or other conveyance), a Veteran or service member must have acquired one of the following disabilities as a result of injury or disease incurred or aggravated during active military service, or as a result of medical treatment or examination, vocational rehabilitation, or compensated work therapy provided by the Department of Veterans Affairs (VA) under 38 U.S.C. 1151:
- loss, or permanent loss of use (LOU), of one or both feet
- loss, or permanent LOU, of one or both hands,
- permanent impairment of vision in both eyes with a
- central visual acuity of 20/200 or less in the better eye with corrective glasses, or
- central visual acuity of more than 20/200 if there is a field defect in which the peripheral field has contracted to such an extent that the widest diameter of visual field has an angular distance no greater than 20 degrees in the better eye, or
- a severe burn injury, defined as disability caused by deep partial thickness or full thickness burns resulting in scar formation that
- causes contractures
- limits motion of one or more extremities or the trunk, and
- precludes effective operation of an automobile, or
- amyotrophic lateral sclerosis (ALS).
Notes:
- Per VAOPGCPREC 60-1990, eligibility for an automobile grant may be based on functional as well as organic LOU of an extremity or blindness. For example, a conversion reaction may cause functional, as opposed to organic, blindness.
- Eligibility based on burn injury was added by Public Law (PL) 111-275, Veterans’ Benefits Act of 2010 , and only applies to claims pending or received on or after October 1, 2011.
- Eligibility based on ALS was added by regulatory revision to 38 CFR 3.808 effective February 25, 2015, and only applies to claims pending or received on or after that date.
Reference: For more information on the eligibility requirements for the automobile allowance and adaptive equipment, see
- 38 CFR 3.808, and
- 38 U.S.C. Chapter 39 .
XIII.i.2.A.1.bIssuing a Certificate of Eligibility
A certificate of eligibility for financial assistance in the purchase of a new or used automobile or other conveyance may be made
- in an amount not exceeding the amount specified in 38 U.S.C. 3902, and
- if the eligibility requirements are met.
Prior to January 5, 2023, only one automobile allowance was authorized in the Veteran’s or service member’s lifetime except as specified in 38 U.S.C. 3903(a)(2), which was previously added by PL 112-154 to authorize VA to provide or assist in providing a second automobile or other conveyance when the
- vehicle previously purchased with VA financial assistance was destroyed as a result of a natural or other disaster
- destruction was not the Veteran’s or service member’s fault, and
- Veteran or service member did not receive compensation for the loss from a property insurer.
Effective January 5, 2023,PL 117-333, Veterans Auto and Education Improvement Act of 2022 , further amended 38 U.S.C. 3903(a) to change the general limitation on automobile allowance grants that previously restricted this to a once-in-a-lifetime benefit. As of the date of enactment of PL 117-333 , VA may provide or assist in providing an additional automobile or other conveyance if more than 30 years have passed since the Veteran or service member most recently received VA financial assistance to purchase an automobile or other conveyance. Important:
- PL 117-333 did not change the authority to provide or assist in providing a second automobile or other conveyance under the disaster replacement provisions of PL 112-154. A second automobile or other conveyance may still be provided under PL 112-154 when the requirements outlined above are met.
- The law prohibits VA from making payments for automobile/conveyance grants directly to Veterans or service members. VA is required to pay the benefit to the seller.
Notes:
- In accordance with the statutory language of 38 U.S.C. 3903(a)(2), the term second automobile allowance will continue to be used when referring to a subsequent automobile allowance under the disaster replacement provisions of PL 112-154 , even if it may not technically be the second allowance the claimant receives.
- In accordance with the statutory language of 38 U.S.C. 3903(a)(3), the term additional automobile allowance will be used when referring to a subsequent automobile allowance under the provisions of PL 117-333(more than 30 years since the most recent automobile allowance).
- The term automobile or other conveyance is not defined in the statute or regulation. It is written and interpreted broadly to allow VA the maximum authority to approve the financial assistance. The term encompasses a wide variety of drivable motorized vehicles including, but not limited to, cars and station wagons, sport utility vehicles, minivans or vans, pickup trucks, motor homes, and commercial trucks or farm machines such as a tractor, harvester, or combine.
- The Chief Medical Director or designee makes the determination as to what is specifically necessary for the disability or individual, including whether a specific requested conveyance is or is not necessary for the disability or individual.
References: For more information on processing requests for
- additional automobile allowance as authorized by PL 117-333 , see M21-1, Part XIII, Subpart i, 2.A.5.b, and
- second automobile allowance under the disaster replacement provisions of PL 112-154 , see M21-1, Part XIII, Subpart i, 2.A.5.c.
XIII.i.2.A.1.cEligibility Requirements for Adaptive Equipment
A Veteran or service member who is eligible for the automobile allowance, as described in M21-1, Part XIII, Subpart i, 2.A.1.a, is also eligible for adaptive equipment. To be eligible to receive only adaptive equipment (as opposed to the automobile allowance and adaptive equipment), the Veteran or service member must be entitled to disability compensation for ankylosis of one or both knees or hips based on
- the establishment of service connection, or
- entitlement under 38 U.S.C. 1151 as the result of
- VA treatment or examination
- compensated work therapy, or
- vocational training under 38 U.S.C. Chapter 31.
Notes :
- The adaptive equipment benefit may be paid more than once, and it may be paid to either the seller or the Veteran/service member.
- Adaptive equipment may not be provided for more than two vehicles at a time or during any four-year period.
References: For more information on
- ankylosis of one (or both) knees or hips, see 38 U.S.C. 3902(b)(2), and
- restrictions on the provision of adaptive equipment, see 38 U.S.C. 3903(c).
XIII.i.2.A.1.dDefinition: Adaptive Equipment
The term adaptive equipment includes, but is not limited to
- power steering
- power brakes
- power window lifts
- power seats
- special equipment necessary to assist the eligible person into and out of the automobile or other conveyance, and
- nonarticulating trailers solely designed to transport powered wheelchairs, powered scooters, or other similar mobility devices.
XIII.i.2.A.1.eVeterans Who Do Not Qualify for Benefits
Even though compensation for disability of paired service-connected (SC) and non-service-connected (NSC) organs is payable under 38 CFR 3.383, Veterans do not qualify for the automobile allowance and adaptive equipment based on bilateral visual impairment if the impairment of vision in one eye is due to an NSC disease or injury. Notes:
- Eligibility for the automobile allowance and adaptive equipment may be based on disability of paired extremities under 38 CFR 3.383 because eligibility under 38 U.S.C. Chapter 39 requires the SC loss, or LOU, of only one hand or one foot.
- PL 108-454 , effective December 10, 2004, extended eligibility for the automobile allowance and adaptive equipment to Veterans with qualifying disability under 38 U.S.C. 1151.
Reference: For more information on entitlement to compensation for loss of paired SC and NSC organs or extremities, see 38 U.S.C. 1160.
XIII.i.2.A.1.fAdaptive Equipment for 38 U.S.C. Chapter 31 Beneficiaries
Automobile adaptive equipment may be furnished to a beneficiary under 38 U.S.C. Chapter 31 if Veteran Readiness and Employment Service determines that the equipment is necessary to
- overcome an employment handicap to which an SC disability materially contributes, and
- achieve the goals of the program of rehabilitation.
Reference: For more information on eligibility for adaptive equipment under 38 U.S.C. Chapter 31, see 38 CFR 21.216(a)(3).
XIII.i.2.A.1.gReduction of Benefits Due to a Tort Judgment or Settlement
An automobile allowance or adaptive equipment benefits must be reduced by an “offset amount” in cases where a judgment or settlement of a tort claim against the United States is granted for disability established under 38 U.S.C. 1151, if the tort judgment or settlement
- becomes final
- on or after December 10, 2004, but
- before the date VA awards the automobile allowance or adaptive equipment benefits, and
- includes an amount specifically designated for automobiles or adaptive equipment.
Notes:
- Contact local District Counsel to determine whether a judgment or settlement qualifies for offset.
- If the offset amount exceeds the amount of the automobile allowance or adaptive equipment benefits awarded, the excess amount is offset against VA compensation.
Reference: For more information on tort claims and compensation under 38 U.S.C. 1151, see M21-1, Part VIII, Subpart iv, 6.C.
XIII.i.2.A.1.hTerminating Eligibility for Automobile Allowance and Adaptive Equipment
At the time a decision is authorized that rescinds or terminates a Veteran’s eligibility for the automobile allowance and adaptive equipment, claims processors must notify the Veterans Health Administration (VHA) Prosthetic and Sensory Aids Service (PSAS). Send email notification, with a copy of the rating decision Narrative and Codesheet , to VHA-PSAS (VHAPSASBenefits@va.gov) and upload the email to the Veteran’s claims folder.
2Applications for Automobile Allowance and Adaptive Equipment
This topic contains information on applications for automobile allowance and adaptive equipment, including
- application for
- automobile allowance, and
- adaptive equipment only, and
- handling incomplete applications for the automobile allowance or adaptive equipment.
Revised September 17, 2026
XIII.i.2.A.2.aApplication for Automobile Allowance
A formal claim on VA Form 21-4502, Application for Automobile or Other Conveyance and Adaptive Equipment , is required if the Veteran or service member is applying for the automobile allowance. The application for an automobile or other conveyance is considered an application for the adaptive equipment specified for the claimant’s disability by directive of the Chief Medical Director. The instructions on the VA Form 21-4502 __ contain a list of adaptive equipment that has been preapproved for particular disabilities. Notes:
- There is no time limit for filing a claim.
- Upon receipt of the application, before referring the claim to the rating activity (if necessary)
- establish an end product (EP) as directed in M21-4, Appendix B
- select an appropriate claim label for initial claims, and
- send the claimant the notice required under 38 U.S.C. 5103, when needed.
- A spouse-payee may file an application for an automobile on behalf of an incompetent Veteran, in accordance with VAOPGCPREC 36-1991.
- In most cases, use the Automobile Allowance claim label. However, the IDES Automobile Allowance claim label may be necessary in some cases.
- Where one of the claim labels listed above is applicable, it is important that it is properly applied to ensure appropriate routing through the National Work Queue (NWQ).
- If basic eligibility for the automobile allowance and/or adaptive equipment has been previously denied by rating decision, VA Form 21-4502 must be accompanied by a qualifying request for decision review under 38 CFR 3.2500. Otherwise, treat the submission as a request for application in accordance with procedures found in M21-1, Part II, Subpart iii, 2.G.1.a.
References: For more information on
- EPs, see M21-4, Appendix B
- claim labels, see M21-4, Appendix C
- notification requirements for a complete application, see M21-1, Part II, Subpart iii, 1.C.2.a
- exceptions to the requirement for sending notification under 38 U.S.C. 5103, see M21-1, Part III, Subpart i, 2.B, and
- handling supplemental claims, see M21-1, Part II, Subpart iii, 2.B.
XIII.i.2.A.2.bApplication for Adaptive Equipment Only
A formal claim on a VA Form 10-1394, Application for Adaptive Equipment – Automobile or Other Conveyance , is required if the Veteran or service member is eligible for adaptive equipment only. Typically, this form is provided by the outpatient clinic to the Veteran or service member for forwarding to the finance activity or submitted by the prosthetics department on the Veteran’s or service member’s behalf to the local finance activity. A VA Form 10-1394 __ is also required for approval of equipment not specified on the VA Form 21-4502 for the Veteran’s or service member’s particular disability.Notes:**
- There is no time limit for filing a claim for adaptive equipment.
- Upon receipt of the application, before referring the claim to the rating activity (if necessary)
- establish an EP as directed in M21-4, Appendix B
- for initial adaptive equipment claims, select the applicable claim label, either
- Vehicular Adaptive Equipment , or
- IDES Vehicular Adaptive Equipment , and
- send the claimant the notice required under 38 U.S.C. 5103, when needed.
- Where one of the claim labels listed above is applicable, it is important that it is properly applied to ensure appropriate routing through NWQ.
References: For more information on
- EPs, see M21-4, Appendix B
- claim labels, see M21-4, Appendix C
- notification requirements for a complete application, M21-1, Part II, Subpart iii, 1.C.2.a
- exceptions to the requirement for sending notification under 38 U.S.C. 5103, see M21-1, Part III, Subpart i, 2.B, and
- handling supplemental claims, see M21-1, Part II, Subpart iii, 2.B.
XIII.i.2.A.2.cHandling Incomplete Applications for the Automobile Allowance or Adaptive Equipment
If an application from a person on active duty is incomplete in any essential part or the medical evidence or service status is insufficiently documented
- return the application to the VA prosthetics department, if it is responsible for the deficiency; otherwise
- advise the service member of the deficiency, and
- ask the service member to obtain the necessary evidence.
3Rating Claims for Automobile Allowance and Adaptive Equipment
This topic contains information on rating claims for automobile allowance and adaptive equipment, including
- referring automobile allowance or adaptive equipment claims to the rating activity
- when to prepare a rating decision on eligibility for automobile allowance or adaptive equipment
- definition of deep partial thickness and full thickness burns, and
- determining eligibility based on burn injury.
Revised September 17, 2026
XIII.i.2.A.3.aReferring Automobile Allowance or Adaptive Equipment Claims to the Rating Activity
If prior rating decisions do not establish the existence of a qualifying SC disability, refer the claim to the rating activity following completion of any necessary development.
XIII.i.2.A.3.bWhen to Prepare a Rating Decision on Eligibility for Automobile Allowance or Adaptive Equipment
Prepare a rating decision whenever
- a claim for automobile allowance or adaptive equipment is received from a Veteran or service member and the issue
- has not been previously considered, or
- was previously denied and a qualifying request for decision review under 38 CFR 3.2500 has been received, or
- the issue of eligibility for automobile allowance or adaptive equipment is inferred from a disability rating that fulfills the applicable disability criteria.
Important: If the Veteran or service member submits a claim for a subsequent automobile allowance, process the request in accordance with the instructions M21-1, Part XIII, Subpart i, 2.A.5.b or c, as applicable.References : For more information on requests for decision review, including
- supplemental claims, see
- higher-level reviews (HLRs), see M21-5, Chapter 5.
XIII.i.2.A.3.cDefinition: Deep Partial Thickness and Full Thickness Burns
Deep partial thickness burns occur when there is complete destruction of the epidermis and severe damage to the dermal layer. Full thickness burns occur when there is complete destruction of the epidermis and dermis. There may also be damage to the underlying subcutaneous fat layer.
XIII.i.2.A.3.dDetermining Eligibility Based on Burn Injury
To determine eligibility for financial assistance in the purchase of an automobile or other conveyance and adaptive equipment based on burn injury, the rating activity should
- look for any full thickness or deep partial thickness scars that cause contracture and limit motion of one or more extremities or the trunk and
- review medical and lay statements for credible evidence that the burn injury precludes effective operation of an automobile.
Notes:
- If the extent or cause of the limitation is not clear, request an examination for the joint or joints affected to clarify the extent of the disability and/or its link to the SC injury.
- Do not request a medical opinion as to whether the functional limitation of the severe burn scar prevents effective operation of an automobile. This is a legal, rather than a medical, determination.
Reference: For more information on considering issues within the scope of the claim, see M21-1, Part V, Subpart ii, 3.A.2.
4Notifying Claimants of Eligibility for Automobile Allowance and Adaptive Equipment
This topic contains information on notifying claimants of decisions on eligibility for automobile allowance and adaptive equipment, including notifying claimants of
- eligibility for automobile allowance or adaptive equipment, and
- the reason for denial of a claim for automobile allowance or adaptive equipment.
Revised September 17, 2026
XIII.i.2.A.4.aNotifying Claimants of Eligibility for Automobile Allowance or Adaptive Equipment
Use the table below to inform the claimant of how to apply for automobile allowance or adaptive equipment when a rating decision infers and establishes basic eligibility in connection with a claim for compensation.
| If the Veteran or service member is eligible for … | Then … |
|---|---|
the automobile allowance |
|
adaptive equipment only |
|
XIII.i.2.A.4.bNotifying Claimants of the Reason for Denial of a Claim for Automobile Allowance or Adaptive Equipment
If an application is not approved, fully inform the claimant of the
- evidence considered
- findings favorable to the claimant under 38 CFR 3.104(c), and
- reason for denial.
References: For more information on
- completing the rating decision narrative, see M21-1, Part V, Subpart iv, 1.A, and
- disagreements related to denial of a claim for automobile allowance and/or adaptive equipment, see M21-1, Part XIII, Subpart i, 2.A.7.
5Processing Claims for Automobile Allowance and Adaptive Equipment
This topic contains information on processing claims for automobile allowance and adaptive equipment, including
- reviewing VA Form 21-4502 and determining prior payment status
- processing requests for
- additional automobile allowance based on PL 117-333, and
- second automobile allowance based on destruction as a result of natural or other disaster
- entitlement based on vehicle lease, and
- determining whether the vehicle is purchased or leased.
Revised September 17, 2026
XIII.i.2.A.5.aReviewing VA Form 21-4502 and Determining Prior Payment Status
Follow the steps in the table below to determine whether prior payment of an automobile allowance has been made following receipt and review of VA Form 21-4502, with claimant-completed entries in Sections
- I, Veteran/Service Member's Identification Information , and
- II, Application Information.
| Step | Action |
|---|---|
1 | Does the claims folder contain a copy of a prior VA Form 21-4502 annotated by the finance activity indicating prior payment of the automobile allowance?
Important: Historically, when a VA Form 21-4502 was processed, the form was filed in the left flap of a paper claims folder. However, it is important to review the entire paper claims folder or electronic claims folder (eFolder) to identify a prior payment. |
2 | Does the claimant’s corporate record show one or more of the following corporate flashes:
Note : The corporate flashes listed above are added by the finance activity when payment of an automobile allowance is authorized. Reference : For more information on corporate flashes, see M21-4, Appendix E, 1.b. |
3 | Does the Share M15 screen display
|
4 | Did a prior rating decision address the issue of eligibility for the automobile allowance?
|
5 | Did the prior rating decision establish eligibility for the automobile or allowance?
|
6 | When eligibility for the automobile allowance was previously denied by rating decision, was the current claim accompanied by a qualifying request for decision review under 38 CFR 3.2500?
|
7 | In connection with the current claim, did the rating activity establish eligibility for either the automobile allowance or adaptive equipment?
Reference : For more information on decision notice requirements, see M21-1, Part VI, Subpart i, 1.B.1.b. |
8 | Does either of the following situations apply?
|
9 | Does the finance activity’s review show that a prior payment for an automobile or conveyance was made?
|
10 | Follow the instructions in the table below when there is evidence of prior payment of an automobile allowance. If the claim is for … Then … |
an automobile or conveyance, and the Veteran or service member is not contending entitlement to a second allowance based on the disaster replacement provisions of PL 112-154 | process the claim in accordance with M21-1, Part XIII, Subpart i, 2.A.5.b. |
an automobile or conveyance and the Veteran or service member
| process the claim in accordance with M21-1, Part XIII, Subpart i, 2.A.5.c. |
an automobile or conveyance and the Veteran or service member
| process the claim in accordance with M21-1, Part XIII, Subpart i, 2.A.5.b. Note: If a second allowance under the disaster replacement provisions of PL 112-154 was previously paid, then the claim must be considered under the general provisions for additional automobile allowance authorized by PL 117-333. |
adaptive equipment |
|
11 | Complete VA Form 21-4502, Section III, Certificate of Eligibility, by entering all the qualifying disabilities. |
12 | Have VA Form 21-4502 signed (in wet or digital/electronic format) by the Veterans Service Center Manager (VSCM) or by a designee no lower than coach.Reference: For more information on signatures, see M21-1, Part II, Subpart i, 2.B.2. |
13 |
References: For more information on
|
14 | Place a copy of the VA Form 21-4502 in the claims folder. |
XIII.i.2.A.5.bProcessing Requests for Additional Automobile Allowance Based on PL 117-333
Follow the steps in the table below to process claims for additional automobile allowance based on the provisions of PL 117-333(additional allowance authorized if more than 30 years have passed since the most recent automobile allowance). Important: If the claim is for a second automobile allowance based on destruction by natural or other disaster and a second allowance under PL 112-154 has not previously been paid, process the claim in accordance with M21-1, Part XIII, Subpart i, 2.A.5.c.
| Step | Action |
|---|---|
| 1 | Did the prior payment review (described in M21-1, Part XIII, Subpart i, 2.A.5.a) confirm the date that the most recent automobile allowance was paid?
|
| 2 | When there is evidence of prior payment of an automobile allowance but the most recent payment date is unclear,
|
| 3 | In the eFolder in the Veterans Benefits Management System (VBMS), edit the SUBJECT field of the VA Form 21-4502 to identify the evidence that shows the date the most recent automobile allowance payment occurred. Note: The most recent automobile allowance payment could be an initial (first-time) automobile allowance or a subsequent payment, such as a second automobile allowance granted under PL 112-154. Reference: For more information on editing document properties, see the VBMS User Guide. |
| 4 | Did the prior payment review and/or response from the finance activity confirm that the most recent automobile allowance was paid more than 30 years ago?
Reference : For more information on decision notice requirements, see M21-1, Part VI, Subpart i, 1.B.1.b. |
| 5 | Complete VA Form 21-4502, Section III, Certificate of Eligibility , by entering all the qualifying disabilities. |
| 6 | Have VA Form 21-4502 signed (in wet or digital/electronic format) by the VSCM or by a designee no lower than a coach.Reference : For more information on signatures, see M21-1, Part II, Subpart i, 2.B.2. |
| 7 |
Please note, although your application with Section III, Certificate of Eligibility, is completed and signed for obtaining an additional automobile allowance, you may not be eligible to receive adaptive equipment on the purchased vehicleif there are at least two automobiles or other conveyances for which you have received adaptive equipment within the past four years. (38 CFR 17.158(a)). The only exception to 38 CFR 17.158(a) is when there is an event that is beyond the control of the eligible person, such as where the vehicle was lost due to fire, theft, accident, or court action, when repairs are so costly as to be prohibitive, or a different vehicle is required due to a change in the eligible person's physical condition. _Important : Please contact your local Veterans Health Administration (VHA) Prosthetic and Sensory Aids Service (PSAS) prior to obtaining any (new or used) adaptive equipment. VA may deny claims for payment or reimbursement if eligibility has not been established or eligibility for new or used adaptive equipment is not verified by VHA. _Reference : For more information on decision notice requirements, see M21-1, Part VI, Subpart i, 1.B.1.b. |
| 8 |
Reference: For more information on the requirement of referring claims for adaptive equipment to the finance activity, see M21-1, Part XIII, Subpart i, 2.A.6.f. |
| 9 | Place a copy of VA Form 21-4502 in the claims folder. |
XIII.i.2.A.5.cProcessing Requests for Second Automobile Allowance Based on Destruction as a Result of Natural or Other Disaster
Regional offices must refer all claims for a second automobile allowance based on the disaster replacement provisions of PL 112-154 to Compensation Service for an advisory opinion, unless review of the claims folder demonstrates that the
- requirements of PL 112-154** are clearly not met, and/or
- second allowance under PL 112-154 was previously paid.
Follow the steps in the table below to route claims for second automobile allowances based on PL 112-154 to Compensation Service for review.Important : If a second automobile allowance under PL 112-154 was previously paid, process the claim as a claim for additional automobile allowance in accordance with M21-1, Part XIII, Subpart i, 2.A.5.b.
| Step | Action |
|---|---|
| 1 | Prepare a memorandum using the format prescribed in M21-1, Part X, Subpart v, 1.A.1.h, and in it, include the following:
|
| 2 | Treat the memorandum as the equivalent of an administrative decision, and follow the instructions in M21-1, Part X, Subpart v, 1.C.2.i to obtain and document all required signatures. |
| 3 | Upload the memorandum and any other relevant documentation to the eFolder in VBMS. |
| 4 | Add the
|
| 5 | Is the claim being processed in the NWQ environment?
|
Important: Send any questions concerning the processing or referral of requests for second automobile allowances under PL 112-154 to VAVBAWAS/CO/214DADVISORYANDSRT.
References: For more information on
-
eligibility requirements for a second automobile allowance based on destruction as a result of natural or other disaster, see
-
PL 112-154
-
38 U.S.C. 3903(a)(2), and
-
M21-1, Part XIII, Subpart i, 2.A.1.b
-
-
NWQ claims processing, see the NWQ Playbook , and
-
brokering claims, see the VBMS Core User Guide.
XIII.i.2.A.5.dEntitlement Based on Vehicle Lease
The transfer of possession of a vehicle under a contract amounting to a lease does not qualify for the automobile allowance under 38 U.S.C. 3902(a).
XIII.i.2.A.5.eDetermining Whether the Vehicle Is Purchased or Leased
Use the table below to determine whether the vehicle is purchased or leased.
| When the … | Then the agreement is a … |
|---|---|
applicant and vendor are absolutely bound at the outset to a purchase and sale | purchase. |
| lease. |
6Processing and Paying Eligibility Requests and Certificates of Eligibility
This topic contains information on processing and paying eligibility requests and certificates of eligibility, including
- payment if the vehicle was purchased before adjudicative action established eligibility
- receiving eligibility requests for vehicles acquired prior to receipt of allowance
- processing eligibility requests for vehicles acquired prior to receipt of allowance
- finance activity responsibility to record and report payment of the automobile allowance
- preventing duplicate payment of the automobile allowance, and
- referring adaptive equipment claims to the finance activity.
Revised August 8, 2025
XIII.i.2.A.6.aPayment if the Vehicle Was Purchased Before Adjudicative Action Established Eligibility
Ordinarily, an application on VA Form 21-4502 is completed and approved by the authorization activity to certify eligibility before the claimant takes possession of, or title to, the vehicle. However, payment of the automobile allowance is not precluded if the vehicle was purchased before the adjudicative action establishing eligibility, provided the claimant was actually eligible on the date on which the claimant signed the sales contract. The claimant’s eligibility is controlled by the effective date of the qualifying disability.
XIII.i.2.A.6.bReceiving Eligibility Requests for Vehicles Acquired Prior to Receipt of Allowance
The Veterans Service Center (VSC) receives requests in duplicate for eligibility data for reimbursement of adaptive equipment for a vehicle acquired prior to receipt of the automobile allowance from the medical center or outpatient clinic. The request identifies the claimant and the reason for the request. Example: “Was claimant eligible under 38 U.S.C. 3902 on[Date expense was incurred for purchase, installation, repair, or reinstallation of adaptive equipment]? ”
XIII.i.2.A.6.cProcessing Eligibility Requests for Vehicles Acquired Prior to Receipt of Allowance
After receiving eligibility requests for vehicles acquired prior to receipt of the automobile allowance, use the table below to determine eligibility.
| If … | Then … |
|---|---|
the claimant has not previously filed a claim for the automobile allowance and adaptive equipment | determine basic eligibility as described in M21-1, Part XIII, Subpart i, 2.A.1.
|
a request for eligibility for adaptive equipment only is received (based on SC ankylosis) | review the claims folder to determine if the Veteran or service member is eligible. If the Veteran/service member is eligible, annotate the request to show
|
XIII.i.2.A.6.dFinance Activity Responsibility to Record and Report Payment of the Automobile Allowance
When the VA Form 21-4502 with Section IV, Receipt for Automobile or Other Conveyance and Adaptive Equipment , completed by the claimant is returned and scheduled for payment, the finance activity
- annotates the copy of the application in the claims folder to show the
- date
- amount authorized for payment, and
- initials of the voucher auditor
- records the payment in the master record
- forwards a copy of the completed VA Form 21-4502 to the outpatient clinic of jurisdiction, and
- appends the applicable corporate flash to indicate the type of automobile allowance payment:
- Auto Allowance Paid – Initial
- Second Auto Allowance Paid – Catastrophe , or
- Addl Auto Allowance Paid – 30+ years.
Note : If VA Form 21-4502 is received in the VSC with Sections III and IV already completed, the claims processor must
- cancel the pending EP, if one was established, and
- route the form to the finance activity for processing.
Reference : For more information on corporate flashes, see M21-4, Appendix E, 1.b.
XIII.i.2.A.6.ePreventing Duplicate Payment of the Automobile Allowance
The VSC permanently retains the annotated copy(ies) of VA Form 21-4502 in the claims folder to prevent duplicate payment of the automobile allowance in the event a subsequent claim is received and the criteria for a subsequent (second or additional) automobile allowance provided in 38 U.S.C. 3903(a) are not met.Reference : For more information on the circumstances in which a subsequent automobile allowance may be warranted, see M21-1, Part XIII, Subpart i, 2.A.1.b.
XIII.i.2.A.6.fReferring Adaptive Equipment Claims to the Finance Activity
Refer all claims for adaptive equipment to the finance activity. The finance activity will determine if the adaptive equipment is preapproved for reimbursement based upon the effective date of entitlement, the Veteran’s SC disability, or specific authorization by the local VA outpatient clinic. If it is not, then the finance activity will forward the claim to the outpatient clinic serving the applicant's residence. The designee of the Chief Medical Director will consider the claim. The prosthetic department will signify its approval by completing VA Form 10-1394. This form is then returned to finance for payment. These claims may be independent of any initial or subsequent application for an automobile, and may involve repair, replacement, or reinstallation of adaptive equipment.
7Processing Disagreements With Decisions on Automobile Allowance and Adaptive Equipment Claims
Revised March 1, 2019
XIII.i.2.A.7.aDisagreements With Decisions on Automobile Allowance and Adaptive Equipment Claims
Use the table below to determine the next steps when the claimant files a disagreement relating to the denial of a claim for automobile allowance and/or adaptive equipment.
| If … | Then the … |
|---|---|
the denial resulted from a determination that the criteria for basic eligibility were not met | authorization activity addresses the disagreement and processes any pending legacy appeals.
|
a legacy substantive appeal is filed because of denial by the medical facility | authorization activity forwards the claims folder to the medical facility for processing and certification of the legacy appeal. |
End of Part XIII, Subpart i, Chapter 2, Section A