--- title: "Part XIII, Subpart i, Chapter 2, Section A Automobile and Adaptive Equipment Allowance Under 38 U.S.C. Chapter 39" document: "M-21-1" section: "Part XIII, Subpart i, Chapter 2, Section A" canonical: "https://veteranai.co/va-regulations/m21-1/xiii.i.2.a-automobile-and-adaptive-equipment-allowance-under-38-u-s-c" source: "https://www.knowva.ebenefits.va.gov/system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000173638/M21-1-Part-XIII-Subpart-i-Chapter-2-Section-A-Automobile-and-Adaptive-Equipment-Allowance-Under-38-USC-Chapter-39" updated: "2026-09-07T14:38:08.602951Z" --- December 11, 2023 ### XIII.i.2.A.1.a. Eligibility Requirements for Financial Assistance for a Conveyance 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) ([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 and 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. **Example:** A conversion reaction may cause functional, as opposed to organic, blindness. * Eligibility based on burn injury only applies to claims filed on or after October 1, 2011. **Reference:** For more information on the eligibility requirements for the automobile allowance and adaptive equipment, see * [38 CFR 3.808](), * [38 U.S.C. Chapter 39](), and * _Public Law (PL) 111-275_ , _Veterans Benefits Act of 2010._ ### XIII.i.2.A.1.b. Issuing 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.c. Eligibility Requirements for Adaptive Equipment A Veteran or service member who qualifies for the automobile allowance also qualifies for adaptive equipment. To be eligible to receive _only_ adaptive equipment (as opposed to the automobile allowance), 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.d. Definition: 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.e. Veterans 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 and adaptive equipment allowance based on bilateral visual impairment if the impairment of vision in one eye is due to an NSC disease or injury. **Notes:** * Entitlement to the automobile and adaptive equipment allowance 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 and adaptive equipment allowance 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.f. Eligibility 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, see [38 CFR 21.216(a)(3)](). ### XIII.i.2.A.1.g. Reduction of Benefits Due to a Tort Judgment or Settlement Automobile 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 or adaptive equipment allowance, 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 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.h. Terminating Entitlement to Automobile and Adaptive Equipment Allowance At the time a decision is authorized that rescinds or terminates a Veteran’s eligibility for the automobile and adaptive equipment allowance, claims processors must notify the Veterans Health Administration (VHA) Prosthetic and Sensory Aids Service (PSAS). Send e-mail notification, with a copy of the rating decision _Narrative_ and _Codesheet_ , to VHA-PSAS ([VHAPSASBenefits@va.gov]()) and upload the e-mail to the Veteran’s claims folder. ## 2. Application for Automobile and Adaptive Equipment Allowance This topic contains information on applications for automobile and adaptive equipment allowance, including * applying for * automobile allowance, and * adaptive equipment only, and * handling incomplete applications for the automobile allowance or adaptive equipment. September 5, 2019 ### XIII.i.2.A.2.a. Applying 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 * 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](). * There are several claim labels that can be appropriate in initial claims for an automobile or other conveyance and adaptive equipment. In most cases involving SC compensation, use _Automobile Allowance_ (code 290AUTO). However, the _DRAS Automobile Allowance_ or _IDES Automobile Allowance_ labels may be necessary in some cases. * Where one of the auto-related claim labels is applicable, it is important that it is properly applied to ensure appropriate prioritization through the National Work Queue (NWQ). NWQ prioritizes the distribution of initial auto and adaptive equipment claims utilizing the claim label. * If basic eligibility to 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.b. Applying 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 entitled to 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 based on ankylosis. * Upon receipt of the application, before referring the claim to the rating activity * establish an EP as directed in [M21-4, Appendix B]() * for initial claims, select the claim label _Vehicular Adaptive Equipment_ , and * send the claimant the notice required under [38 U.S.C. 5103](), when needed. * There are several claim labels that can be appropriate in initial claims for adaptive equipment only. In most cases involving SC compensation, use _Vehicular Adaptive Equipment_ as provided above. However, the _DRAS Vehicular Adaptive Equipment_ or _IDES Vehicular Adaptive Equipment_ labels may be needed in some cases. * Where one of the adaptive-equipment-only claim labels is applicable, it is important that it is properly applied to ensure appropriate prioritization through NWQ. NWQ prioritizes the distribution of initial adaptive equipment claims using the claim label. **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.c. Handling 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. ## 3. Rating Claims for Automobile and Adaptive Equipment Allowance This topic contains information on rating claims for automobile or adaptive equipment allowance, including * referring automobile or adaptive equipment claims to the rating activity * when to prepare a rating decision for automobile or adaptive equipment eligibility * definition of deep partial thickness and full thickness burns, and * determining eligibility based on burn injury. November 6, 2017 ### XIII.i.2.A.3.a. Referring Automobile 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.b. When to Prepare a Rating Decision for Automobile or Adaptive Equipment Eligibility Prepare a rating decision whenever * a claim for automobile or adaptive equipment is received from a Veteran or service member and the issue has not been previously considered, or * the issue of eligibility for automobile 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. ### XIII.i.2.A.3.c. Definition: 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.d. Determining 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](). ## 4. Notifying Claimants of Automobile and Adaptive Equipment Allowance Eligibility This topic contains information on notifying claimants of awards and denials, including notifying claimants of * potential automobile allowance eligibility, and * the reason for denial of the automobile allowance claim. August 8, 2025 ### XIII.i.2.A.4.a. Notifying Claimants of Potential Automobile Allowance Eligibility Use the table below to inform the claimant of potential eligibility after receiving the rating decision. | **If the Veteran or service member is eligible for …**| **Then …** the automobile allowance| * furnish [_VA Form 21-4502_](), if one is not of record, and * instruct the claimant to * complete all items in Sections I and II, and * return the form to the nearest VA regional office (RO). adaptive equipment only| * furnish [_VA Form 10-1394_](), and * instruct the claimant to * complete all items in Part I, and * return the completed form to the nearest VA medical facility. ### XIII.i.2.A.4.b. Notifying Claimants of the Reason for Denial of the Automobile Claim 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 a denial of a claim for automobile and adaptive equipment allowance, see M21-1, Part XIII, Subpart i, 2.A.7. ## 5. Processing Claims for Automobile and Adaptive Equipment Allowance This topic contains information on processing claims for automobile and adaptive equipment allowance, 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. August 8, 2025 ### XIII.i.2.A.5.a. Reviewing VA Form 21-4502 and Determining Prior Payment Status Follow the steps in the table below to determine whether prior payment 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? * If _yes_ , go to Step 8. * If _no_ , go to the next step. **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: * _Auto Allowance Paid – Initial_ * _Second Auto Allowance Paid – Catastrophe_ , or * _Addl Auto Allowance Paid – 30+ years_? * If _yes_ , go to Step 8. * If _no_ , go to the next step. _**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 * a _Y_ in the Auto Allowance Paid field, or * the terminal digit of the year in which the last payment was made in the Auto Adaptive Equipment field? * If _yes_ , go to Step 8. * If _no_ , go to the next step. 4| Did a prior rating decision establish eligibility to the automobile or adaptive equipment allowance? * If _yes_ , go to Step 6. * If _no_ , * send a Section 5103 notice to the claimant * refer the claim to the rating activity for consideration after the duty-to-notify/assist response period has expired, and * go to the next step. 5| Did the rating activity establish eligibility to either the automobile or adaptive equipment allowance? * If _yes_ , go to Step 9. * If _no_ , * deny the claim, and * notify the claimant accordingly. _**Reference**_ : For more information on decision notice requirements, see [M21-1, Part VI, Subpart i, 1.B.1.b](). 6| Does _either_ of the following situations apply? * There is indication that adaptive equipment payments have been made. * There is any other evidence indicating a prior automobile allowance may have been paid. * If _yes_ , * send a request to the finance activity to * review for prior payment, and * provide the most recent payment date of automobile allowance, if prior payment was made, and * after the finance activity completes the review and returns the requested information, * place the response in the claims folder, and * go to the next step. * If _no_ , go to Step 9. 7| Does the finance activity’s review show that a prior payment for an automobile or conveyance was made? * If _yes_ , go to the next step. * If _no_ , go to Step 9. 8| Follow the instructions in the table below. | **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 * ** _is_** contending entitlement to a second allowance based on the disaster replacement provisions of _PL 112-154_ , and * ** _has not_** previously received a second allowance under the provisions of _PL 112-154_ | 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 * ** _is_** contending entitlement to a second allowance based on the disaster replacement provisions of _PL 112-154_ , but * ** _previously_** received a second allowance under the provisions of _PL 112-154_ | 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| * prior payment does _not_ necessarily disqualify the application, and * go to the next step. 9| Complete [_VA Form 21-4502_](), Section III, _Certificate of Eligibility,_ by entering all the qualifying disabilities. 10| 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](). 11| * Release the [_VA Form 21-4502_]() with Section III completed to the applicant along with the decision notification letter * clear the pending EP, and * if there is a claim for adaptive equipment, refer the claim to the finance activity. **References:** For more information on * decision notice requirements, see [M21-1, Part VI, Subpart i, 1.B.1.b](), and * the requirement of referring claims for adaptive equipment to the finance activity, see M21-1, Part XIII, Subpart i, 2.A.6.f. 12| Place a copy of the [_VA Form 21-4502_]() in the claims folder. ### XIII.i.2.A.5.b. Processing 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? * If _yes_ , go to Step 3. * If _no_ , go to the next step. 2| When there is evidence of prior payment of an automobile allowance but the most recent payment date is unclear, * send a request to the finance activity for the most recent payment date of automobile allowance, and * after the finance activity returns the requested information, * place the response in the claims folder, and * go to the next step. 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_? * If _yes_ , go to the next step. * If _no_ , * deny the claim, and * notify the claimant accordingly. _**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| * Release the [_VA Form 21-4502_]() with Section III completed to the applicant, and * send a decision notification letter that includes the language shown below, inserted as free text following VBMS-generated language. _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 vehicle**if** 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| * Clear the pending EP, and * if there is a claim for adaptive equipment, refer the claim to the finance activity. **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.c. Processing Requests for Second Automobile Allowance Based on Destruction as a Result of Natural or Other Disaster ROs 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 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: * Veteran’s or service member’s name * file number * date of previous automobile allowance grant * make, model, and year of vehicle purchased with previous grant * circumstances surrounding the vehicle’s destruction, including date (month, day, and year) of destruction * city and state where vehicle was located at the time of destruction * description of the disaster and damage done to the vehicle, and * verbal or written confirmation certifying to VA that the Veteran or service member has not received compensation from an insurer for the loss. 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 * _Compensation Service Review – Opinion_ special issue indicator to at least one contention, and * _Compensation Service Case Review_ tracked item. 5| Is the claim being processed in the NWQ environment? * If _yes_ , take no further action, as the claim will be routed to Compensation Service automatically. * If _no_ , manually broker the claim to _Compensation Service (Washington DC)_. **_ _** **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.d. Entitlement 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.e. Determining 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. * applicant * retains the option of considering the payments as rent, and * is not obligated to purchase the vehicle at the end of the lease period, or * dealer retains the right to take the car back even after the applicant meets all the payments due | lease. ## 6. Processing 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 the payment * preventing duplicate payment, and * referring adaptive equipment claims to the finance activity. August 8, 2025 ### XIII.i.2.A.6.a. Payment 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.b. Receiving 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.c. Processing 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. * there is evidence of entitlement or non-entitlement on record, or * a determination of basic eligibility has already been made * determine the eligibility of the claimant for an automobile allowance on the date furnished by the medical facility * annotate the request form to show _Claimant (was) (was not) eligible on_**[date furnished by the medical facility]** * add a copy of the eligibility request in the claims folder, and * return the annotated form to the requester. 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 entitled. If the Veteran/service member is entitled, annotate the request to show * eligibility because of SC ankylosis (LOU) of one or both knees or hips. * If eligibility is _not_ established, furnish a copy of the rating decision. ### XIII.i.2.A.6.d. Finance Activity Responsibility to Record and Report the Payment 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.e. Preventing Duplicate Payment The VSC permanently retains the annotated copy(ies) of [_VA Form 21-4502_]() in the claims folder to prevent duplicate payment 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.f. Referring 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. ## 7. Processing Disagreements With Decisions on Automobile and Adaptive Equipment Allowance Claims March 1, 2019 ### XIII.i.2.A.7.a. Disagreements With Decisions on Automobile and Adaptive Equipment Allowance 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 and adaptive equipment allowance. | **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. * the claimant has established basic eligibility to the automobile allowance and adaptive equipment, and * the issue is the result of denial by the medical facility for certain adaptive equipment * authorization activity transfers the claims folder to the medical facility to prepare a decision on the issue, and * medical facility returns the decision and claims folder to the authorization activity for release of the decision. 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.