EV point-of-sale tax credits eclipse $2 billion since new program launched

Credit: Tesla

Electric vehicle point-of-sale tax credits have eclipsed $2 billion of savings for more than 300,000 EV buyers since the new program launched at the beginning of this year.

The Department of the Treasury and the Internal Revenue Service (IRS) both announced this week that the new program, which aims to give car buyers their tax credits up front, has already immediately amounted to massive savings over hundreds of thousands of transactions for new vehicles.

A release from the two agencies yesterday detailed the amount that it has already saved car buyers, who no longer have to redeem their tax credit the following year:

“…the U.S. Department of the Treasury and IRS announced consumers have saved more than $2 billion in upfront costs on their purchase of more than 300,000 clean vehicles since January 1, 2024, marking a major milestone in the Biden-Harris Administration’s work to lower transportation costs for Americans.”

Last October, the Treasury and IRS announced a new guidance aimed toward lowering the cost for consumers to adopt sustainable powertrains would become available.

It essentially meant tax credits would no longer have to be filed during tax season and instead could be given immediately when the car is purchased.

It already has shown tremendous interest:

“Since this mechanism went into effect on January 1, 2024, more than $2 billion in financial benefits to consumers at the point-of-sale have been realized through the clean vehicle advance payment program for both new clean vehicles and used clean vehicles. Of the more than 300,000 advance payments that have been issued, more than 250,000 are for tax credits related to new clean vehicles.”

The press release said that 93 percent of new vehicle transactions and 85 percent of used clean vehicle transactions involve a transfer of credit to the dealer, which means the price of the car is immediately lowered by the amount of the credit.

They can also have cash given with this program, so they can get a check cut to them for up to $7,500 for a new EV or $4,000 for a used one.

The program was already a drastic improvement from the past, as this truly expedited things for buyers and made the tax credit easier to obtain.

Nobody wanted to wait for it and if people can qualify for the full amount and take $7,500 off the sticker price of their car, it’s a win-win for everyone.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey Klender: Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his time at TESLARATI, Joey has broken several big stories, including the first images of the Tesla Model S Plaid, the imminent release of the 4680 Model Y through EPA certification, and several expansions to the Lucid AMP-1 factory in Arizona, to name a few. His stories have been featured in several publications, including Yahoo! Finance, Fox News, CNET, and Seeking Alpha. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on Twitter @KlenderJoey.
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