- 8,700 U.S. dealerships join forces with the government, offering instant incentives of up to $7,500 for new and $4,000 for used EVs.
- Traditional tax credits transformed into instant cash incentives at the dealership, enhancing the financial allure of EVs.
8,700 U.S. dealers turbocharge sales with point-of-sale tax credits, fuelling hundreds with $7,500 incentives
In a major move, 8,700 car dealers nationwide have teamed up with the U.S. government to offer point-of-sale incentives, according to Friday’s announcement by Treasury Department officials.
Over the past week, the number of participating dealerships has shot up by 1,300. This means snagging a deal on a new or used EV is becoming increasingly accessible. The long-standing EV tax credit used to be a federal tax deduction for buyers. But as of January 1st, it’s transformed into what’s essentially cash available at the dealership. So, getting a good deal on your EV just got a whole lot simpler.
Assuming both you and your chosen vehicle meet the eligibility criteria for the credit programme, you stand to benefit from a substantial reduction in the purchase cost. For a new EV, you could enjoy up to $7,500 off, and for a used one, a discount of up to $4,000. The dealership provides this discount, and in turn, the government reimburses them for extending this financial benefit to you. It’s a win-win.
The revamped process is a significant step in enhancing the accessibility of the tax credit and making EVs more enticing to a broader audience. The shift towards an instant discount is undoubtedly more appealing than waiting for a refund in the future. Additionally, the previous system disadvantaged buyers who owed less than $7,500 in federal taxes, as they couldn’t fully capitalise on the credit. The updated approach levels the playing field, ensuring that more individuals can enjoy the benefits of the EV tax credit.
Car dealerships are wasting no time in passing on government-funded discounts to eager car shoppers. The IRS has not only received, but also acknowledged numerous payment requests from dealerships this week. According to Treasury officials, the distribution of payments is on the verge of commencing, signalling that these discounts will soon be hitting the pockets of those taking advantage of the programme.
2024 is bringing some changes to the EV tax credit scene, making it a bit simpler – but also tougher. Unfortunately, new battery rules have led to a trim in the list, saying goodbye to rides like the Mustang Mach-E and certain Tesla Model 3s. But familiar faces like the Tesla Model Y and Chevrolet Bolt are still in the running. So, while the lineup shifted, there are still solid options.