Electric vehicles (EVs) are becoming increasingly popular, and the federal government offers a tax credit of up to $7,500 to purchase new EVs . However, some changes are coming to the EV tax credit in 2024 that car dealers should be aware of.
First, it’s important to note that the credit is non-refundable, meaning that it can only be used to offset tax liability. Additionally, the credit is set to expire on December 31, 2023, for some EV models, including the Tesla Model 3 Rear-Wheel Drive and Model 3 Long Range.
Starting January 1, 2024, the credit will be available as a point-of-sale rebate, which means that eligible consumers can transfer the full value of the new or previously owned vehicle credit to a car dealer at the time of purchase. This rebate will be available for both new and used EVs, and there will be no income restrictions. However, the rebate will only be available for EVs that meet certain criteria, such as having a battery capacity of at least 4 kWh and being manufactured by an eligible manufacturer. Only vehicles purchased under the consumer clean vehicle credits are eligible for this benefit.
- The government currently offers a tax credit of up to $7,500 for the purchase of new EVs.
- The credit is non-refundable, meaning that it can ONLY be used to offset tax liability.
- The credit is set to expire on December 31, 2023, for some EV models.
- Starting January 1, 2024, the credit will be available as a point-of-sale rebate.
- The rebate will be available for both new and used EVs, with no income restrictions.
- The rebate will be available for EVs that meet certain criteria.
- Only vehicles purchased under the consumer clean vehicle credits are eligible.
Car dealers should be aware of these changes to the EV tax credit in 2024 to help their customers make informed decisions about purchasing EVs. By understanding the new rebate system, car dealers can help their customers take advantage of the full value of the credit and make the most of their EV purchases.
