From the beginning of the year to February 6, the United States government reimbursed auto dealers for approximately $135 million in advance point-of-sale customer electric vehicle tax credit payments.
Before 2024, U.S. auto buyers could only claim the $7,500 new electric vehicle credit or the $4,000 used EV credit on their tax returns the following year. Beginning January 1, consumers can transfer their credits to a car dealer at the time of sale, lowering the purchase price.
Since January 1, the Internal Revenue Service has received more than 25,000 times of sales reports, with more than 19,500 – or 78% – requesting advance payment, and approximately $135 million has been paid to dealers, according to Treasury.
The advance payment requests total 17,500 for new EVs and 2,000 for secondhand vehicles. More than 11,000 auto dealers in the United States have signed up for the initiative, with over 8,000 opting in for advanced payments.
Consumers must swear to meet income limitations to qualify for the tax credit at the time of purchase, or they will be required to repay the government when submitting their taxes. The adjusted gross income maximum for new vehicles is $300,000 for married couples and $150,000 for individuals.
