WASHINGTON — The U.S. Treasury Department on Friday issued recent guidance on how a $7,500 electric vehicle tax credit may be used as a point-of-sale rebate starting in January.
Currently, consumers can only make the most of the $7,500 recent EV credit or $4,000 used EV credit once they file their tax returns the next 12 months.
Starting Jan. 1, consumers can transfer the credits to a automotive dealer, effectively lowering the vehicle’s purchase price, a change that will help boost EV sales.
Under the guidance issued Friday, consumers might want to attest they meet income limits to qualify for the tax credit or they may have to 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.
Congress approved a sweeping reform of the EV tax credits in August 2022 as a part of the $430 billion Inflation Reduction Act (IRA).
This Article First Appeared At www.autoblog.com