Treasury Department Reports Overwhelming Success of Point-of-Sale EV Tax Credits

According to a press release from The Treasury Department, since the start of the year when the option was introduced, 90% of eligible electric vehicle buyers have received their federal tax credit immediately at the time of purchase.

Under the new regulations introduced by the Inflation Reduction Act (IRA), consumers can now receive a maximum of $7,500 in credits for new electric vehicles (EVs) and up to $4,000 for pre-owned EVs. These incentives took effect on January 1 and can be claimed immediately at dealerships during the purchase.

2024 Model of the Ford F-150 Lightning, named

The Treasury Department asserts that it has distributed over 150,000 tax credits, with 125,000 being allocated for the purchase of new vehicles, amounting to over $1 billion in monetary advantages. They report that above 90% of the credits for new vehicles and around 80% for used vehicles were provided as instant discounts at the time of purchase.

The adoption rates are noteworthy given that at the start of the year, when the new initiative was implemented, not every qualified dealership had completed registration with the IRS to provide instant discounts. According to data from the Treasury Department, it appears that the majority of dealerships, particularly those with high electric vehicle sales, have now signed up.

2024 Chevy Blazer Electric Vehicle RS Model

Enabling qualified electric vehicle purchasers to obtain the credit immediately upon purchase, instead of waiting to claim it during tax season, might improve the impact of the perk. A 2022 study by George Washington University revealed that consumers are so in favor of an instant rebate at the time of purchase that they would have been content with a smaller amount right away.

Rebates at the time of purchase aren't exclusive to traditional franchised car dealers. When buying a Tesla through its own direct sales system, the tax incentive can be applied immediately.

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