Buyers of electric vehicles will soon be able to get a federal tax credit at the dealership rather than waiting for months.
Under changes announced Friday by the Treasury Department, eligible buyers will no longer have to wait until filing federal income tax returns to get benefits.
Beginning Jan. 1, consumers may take $7,500 off the sticker price of a new EV or $4,000 off of a used EV when buying the vehicles.
“For the first time, the Inflation Reduction Act allows consumers to reduce the up-front cost of a clean vehicle, expanding consumer choices and helping car dealers expand their businesses,” said Laurel Blatchford, chief implementation officer for the Inflation Reduction Act, which President Joe Biden signed into law in August 2022.
See: Biden has signed the Inflation Reduction Act. Here’s MarketWatch’s rundown of how it will affect your energy bills, investments and drug costs.
“The IRS has focused on streamlining this process for car dealers as part of its commitment to improving service and helping taxpayers claim the credits they are eligible for,” Blatchford said.
The Treasury said beginning in January, dealers who register with the IRS will be able to submit clean-vehicle sales information to the agency “and promptly receive payment for transferred credits.”
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