EV
US paid $135 million in direct EV tax credit to dealers this year
The U.S. government has already issued an advance of $135 million to dealers in the point-of-sale Federal Tax Credit for electric vehicles (EV) purchases.
The U.S. Federal Tax Credit gives incentives to eligible EV buyers and helps boost EV sales to reduce carbon emissions. These incentives go up to $7,500 and states are also offering their subsidies on growing EV demand.
Customers can now choose to get a discount on the price during purchase or delivery instead of waiting to get the credit back on their tax filing next year. This new way of tax rebate is welcomed by the industry and many dealers have filed to offer point-of-sale EV credit programs.
With that being said, the government has paid $135 million for the total EV purchases that are eligible for federal tax credit starting January 1, 2024.
This type of tax rebate lowers the purchase price and heavily affects the customer on a positive side.
Internal Revenue Service (IRS) revealed more than 25,000 time of sale reports including over 19,500 with advance payment requests. It accounts for about 78% of the EV rebate amount of around $135 million.
More data from the IRS mentioned that 17,500 advance payment requests have been received for new EVs and 2,000 requests for used vehicles. 11,000 U.S. auto dealers have registered for federal tax incentives and 8,000 chose advanced payments.
Deputy Treasury Secretary Wally Adeyemo said that there’s a strong demand for this upfront discount and it’s expected to continue momentum in the EV industry.
In a recent revision of the guidelines, almost half of the electric vehicles have lost their eligibility for federal tax credits. This includes models Nissan Leaf, Tesla Model 3, Chevrolet Blazer EV, Calidllac Lyriq, Ford Mach-E, and Ford E-Transit.
These new changes mark the strict sourcing control over the vehicle parts, especially battery minerals. The first round of eliminations is based on batteries that are imported from countries such as China. Still, carmakers can comply with the guidelines to regain the tax incentives.
(source – Yahoo)