- Wednesday, October 16, 2024
Buyers of electric vehicles will soon have the opportunity to receive a federal tax credit directly at the dealership. This eliminates the need to wait for months until filing federal income tax returns to obtain the benefits.
As per the changes announced by the Treasury Department on Friday, eligible buyers can now avail a reduction of $7,500 on the sticker price of a new electric vehicle or $4,000 off the price of a used one at the time of purchase.
"This is a groundbreaking development as it enables consumers for the first time to instantly reduce the up-front cost of a clean vehicle, presenting them with more choices, while also supporting the growth of car dealerships," stated Laurel Blatchford, the chief implementation officer for the Inflation Reduction Act. The Inflation Reduction Act was signed into law by President Joe Biden in August 2022.
As part of their commitment to improving service and ensuring eligible taxpayers can claim their credits, the IRS has worked on simplifying the process for car dealers, according to Blatchford.
Starting from January, dealers who register with the IRS will be able to submit information about clean-vehicle sales to the agency and receive prompt payment for the transferred credits.
This move comes as Tesla reduces prices of its Model 3 and Model Y vehicles in the U.S.
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