Summary
- Electric vehicle point-of-sale tax credits have saved over $2 billion for more than 300,000 EV buyers since the program launched this year
- A new program by the Department of the Treasury and IRS gives tax credits upfront to car buyers
- The program aims to reduce costs for consumers by immediately applying the tax credit at the time of purchase
- Over 250,000 transactions for new clean vehicles and over 50,000 for used clean vehicles have received advance payments
- 93% of new vehicle transactions and 85% of used clean vehicle transactions involve transferring the credit to the dealer, lowering the price at the point of sale
Article
The Department of the Treasury and the Internal Revenue Service (IRS) announced that the new electric vehicle point-of-sale tax credits program has saved over $2 billion for more than 300,000 EV buyers since the program launched earlier this year. The program aims to give car buyers their tax credits upfront, eliminating the need to redeem them the following year. The savings are being realized through the clean vehicle advance payment program, with more than 250,000 tax credits issued for new clean vehicles and used clean vehicles.
The new guidance announced last October by the Treasury and IRS was aimed at lowering the cost for consumers to adopt sustainable powertrains. This meant that tax credits for purchasing electric vehicles no longer had to be filed during tax season, but could instead be given immediately at the time of purchase. This has led to a significant increase in interest, with more than $2 billion in financial benefits being realized at the point of sale for both new and used clean vehicles. The majority of transactions, 93 percent for new vehicles and 85 percent for used clean vehicles, involve a transfer of credit to the dealer to lower the price of the car.
Buyers under the program can also choose to have cash given to them, receiving up to $7,500 for a new EV or $4,000 for a used one. This has made the process much quicker and easier for buyers, as they no longer have to wait for the tax credit to be applied later. This has been a win-win for both consumers and dealers, as the upfront savings make purchasing an electric vehicle more attractive. The program has been well-received by buyers, with the majority of transactions including a transfer of the credit to the dealer to reduce the purchase price of the vehicle.
The implementation of this program has been a significant milestone in the Biden-Harris Administration’s efforts to lower transportation costs for Americans. The streamlined process of providing tax credits upfront has made it more convenient for consumers to adopt electric vehicles and has resulted in significant savings for buyers. The success of the program highlights the increasing interest in clean vehicles and the importance of making sustainable transportation more accessible to a wider range of consumers. Overall, the program has had a positive impact on the adoption of electric vehicles and has helped to make clean transportation more affordable for Americans.
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