NEWS: The U.S. Treasury Department today issued new guidance on how a $7,500 EV tax credit can be used as a point-of-sale rebate starting in January.
Starting Jan. 1, consumers can transfer the credits to a car dealer, effectively lowering the vehicle’s purchase price: "Consumers can choose to transfer their new clean vehicle credit of up to $7,500 and their previously owned clean vehicle credit of up to $4,000 to a car dealer starting January 1, 2024. This will effectively lower the vehicle’s purchase price by providing consumers with an upfront down payment on their clean vehicle at the point of sale, rather than having to wait to claim their credit on their tax return the next year. Only vehicles purchased under the consumer clean vehicle credits are eligible for this benefit."
Under the guidance issued Friday, consumers will need to attest they meet income limits to qualify for the tax credit or they will need to repay the government when filing their taxes.
Dealers will need to register via a new IRS website to offer the credits. Beginning in January, dealers can submit vehicle sales to the IRS and receive payment for tax credits within 72 hours. Under proposed rules released Friday, credit transfers and advance payments would typically not affect dealers’ tax liability and dealer payments would not be part of a consumer's gross income.
Announcement: https://t.co/QmeGFaiP4f
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