The majority of electric vehicle buyers who qualify for the federal tax credit receive the credit as a lump sum Discount at point of sale since that option was added earlier in the year, the Treasury Department said in a press release.
As part of the federal electric vehicle credit enhancements enacted under the Inflationary Reduction Act (IRA), the credits are up to $7,500 for new electric vehicles and up to $4,000 for used electric vehicles The app will be available at the point of sale through dealers on January 1.
Ford F-150 Lightning 2024
Since then, the Treasury Department claims to have issued more than 150,000 tax credits – 125,000 of which are for new vehicle purchases – equivalent to more than $1 billion in financial benefits. According to the Ministry of Finance, more than 90% of new vehicle credits and about 80% of used vehicle credits are issued as point-of-sale discounts.
Those acceptance rates are impressive considering that Not all qualified agents are registered with the IRS and be ready to offer point-of-sale rebates at the beginning of the year, when the new policy takes effect. Figures cited by the Treasury Department indicate that most dealers — or at least those that sell the most electric vehicles — have since participated.
Chevrolet Blazer EV RS 2024
Allowing eligible EV buyers to collect a credit at the point of sale, rather than receiving the credit when they pay their taxes, could enhance the effectiveness of the incentive. Buyer like the idea of discounts at the point of sale so much so that they’ll pay less upfront, a George Washington University study published in 2022 found.
Point-of-sale discounts aren’t limited to franchisees, either. The Tax credits can be claimed on Teslas at the time of purchase through a company-owned direct sales apparatus.
