The Connecticut Supreme Court rejected DaimlerChrysler Services North America LLC’s bid for a $978,000 tax credit for 1997-99, ruling that lenders financing vehicle transactions aren’t entitled to a credit or refund for the sales taxes on the unpaid balance of a loan.

The court ruled that only the original retailer, such as a dealership, can apply for the credit, according to an Automotive News report.

In the court’s decision, Justice Joette Kaatz said that Connecticut law “limits the tax credit to the retailer in the initial sales transaction that directly remitted the tax to the state commissioner of revenue services.”

The court did not accept Daimler Chrysler Services’ argument that lenders qualify for a credit as assignees of the dealerships that arranged the bad loans.

According to the court rulling, the tax statute outweighs contract law pertaining to assignments, the report said.