New Program Expedites Over $1 Billion in EV Tax Credits for Car Buyers

Car buyers have received over $1 billion in electric vehicle (EV) tax credits through a new program that enables quicker payouts, according to Treasury Department officials. The 2022 tax-and-climate law, known as the Inflation Reduction Act, allows car dealers to receive advanced payments of the $7,500 clean vehicle tax credit—or $4,000 for used vehicles—and transfer these credits directly to the buyer at the time of sale. This eliminates the need for buyers to wait until filing their annual tax return, which could be months or even more than a year after their vehicle purchase, to claim the federal credit. Additionally, Americans can now receive the EV tax credit upfront, regardless of their federal tax liability, a change effective from 2024.

If you would like to read more, check out this article from The Hill.