EV Tax Credits Can Now Be Down Payments
Federal guidance says that starting Jan. 1, consumers can transfer them to dealers instead of waiting till tax time.
Dealers must register with the Internal Revenue Service in order to participate in the transfers.
IMAGE: Pexels/Karolina Grabowska
New guidance on federal electric-vehicle tax credits allows consumers to get the breaks at the point of purchase rather than having to wait till tax time.
The U.S. treasury department guidelines will allow EV buyers starting Jan. 1 to transfer their credits to dealers, essentially providing them with up to $7,500 for a down payment.
Dealers will be paid within 72 hours of electronically submitting information on a tax credit transfer from a consumer, the treasury department said.
Buyers of new EVs can get up to $7,500 in tax credits on an eligible purchase if they meet income requirements and up to $4,000 on a used vehicle.
Dealers must register with the Internal Revenue Service in order to participate in the transfers.
Under proposed rules, the transfers would generally not affect dealers’ tax liability and not be included in the consumer’s gross income. The treasury department said it and the IRS will take public comment on those proposals before issuing final rules.
Originally posted on Auto Dealer Today
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