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IRS: 78% Using EV Tax Credit as Down Payment – Kelley Blue Book

Person charging EV at home

Seventy-eight percent of Americans who have claimed the federal government’s electric car tax credits this year used the money as a down payment, according to the Internal Revenue Service (IRS).

Related — How Do Federal EV Tax Credits Work in 2024?

Americans are eligible for a rebate of up to $7,500 on the purchase of many new electric vehicles (EVs) under the 2022 Inflation Reduction Act. The new EV credit is limited to certain cars. But a similar credit of up to $4,000 on a used EV faces fewer restrictions.

Until this year, Americans had to wait until they next filed their taxes after buying an EV to claim the tax rebate. But a change to the law allows buyers to transfer the credit directly to a dealership to use as a downpayment this year.

The IRS reported Wednesday that of the approximately 25,000 Americans who used the credit this year, more than 19,500 took the opportunity to use it up front.  

“The advance payment requests include 17,500 for new EVs and 2,000 for used vehicles,” Reuters reports.

Dealers have to register to receive the down payment. Politico reports, “More than 11,000 dealers have registered to offer the credit.”

This article was originally published by a www.kbb.com . Read the Original article here. .

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