WASHINGTON — The U.S. government has reimbursed auto dealers for more than $580 million in advance point-of-sale consumer electric vehicle
Prior to 2024, U.S. auto buyers could only take advantage of the new EV credit of up to $7,500 or the $4,000 used EV credit when they filed tax returns the following year.
The Internal Revenue Service has received approximately 100,000 time of sale EV reports this year and paid more than $580 million in advance payments to dealers since Jan. 1, Treasury said.
Starting Jan. 1, consumers can transfer the credits to a car dealer at the time of sale, effectively lowering the purchase price.
Treasury spokesperson Haris Talwar said “demand is high four months into implementation of this new provision.”
The Treasury issued guidelines in December aimed at weaning the U.S. EV supply chain away from China
Since then, many have regained eligibility including the Volkswagen ID.4, Nissan Motor Leaf, GM’s Chevy Blazer EV and Cadillac Lyriq.
Consumers must attest they meet income limits to qualify for the tax credit at time of purchase or they will need to repay the government when filing their taxes. For new vehicles
The August 2022 Inflation Reduction Act law reformed the EV tax credit, requiring vehicles to be assembled in North America to qualify for any tax credits, eliminating nearly 70% of eligible models.
It also created a used EV tax credit, lifted 200,000-vehicle manufacturer caps on credits, imposed income and vehicle price restrictions and extended credits to leased vehicles.