WASHINGTON — The U.S. government has reimbursed auto dealers for greater than $580 million upfront point-of-sale consumer electric vehicle (EV) tax credit payments since Jan. 1, the Treasury said on Friday.
Prior to 2024, U.S. auto buyers could only make the most of the brand new EV credit of as much as $7,500 or the $4,000 used EV credit once they filed tax returns the next 12 months.
The Internal Revenue Service has received roughly 100,000 time of sale EV reports this 12 months and paid greater than $580 million upfront payments to dealers since Jan. 1, Treasury said.
Starting Jan. 1, consumers can transfer the credits to a automotive dealer on the time of sale, effectively lowering the acquisition price.
Treasury spokesperson Haris Talwar said “demand is high 4 months into implementation of this recent provision.”
The Treasury issued guidelines in December aimed toward weaning the U.S. EV supply chain away from China. The variety of EV models qualifying for U.S. EV tax credits fell on Jan. 1 to 19 from 43 with some Tesla Model 3s, Chevrolet Silverado EV, Ford Mustang Mach-E, Ford E-Transit vehicles amongst those losing credits.
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’ll must repay the federal government when filing their taxes. For brand spanking new vehicles, the adjusted gross income limit is $300,000 for married couples and $150,000 for people.
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 prolonged credits to leased vehicles.
This Article First Appeared At www.autoblog.com
