Car News Updated Hourly

Treasury has issued $135M in EV tax credits so far in 2024

The federal government has issued $135 million in electric vehicle tax credits so far in 2024, according to new data from the U.S. Treasury released Wednesday.

This is the first year in the clean vehicle credit program’s history that EV buyers can claim the rebate at the time of purchase instead of receiving it through their tax filing.

What You Need To Know

  • The Treasury Department has issued $135 million in electric vehicle tax credits so far this year
  • 2024 is the first year EV buyers can claim the credit at the time of sale
  • The federal clean vehicle credit program provides up to $7,500 on qualifying new EVs and up to $4,000 for qualifying used EVs
  • New EVs from General Motors, Chrysler, Ford and Tesla are eligible for the tax credit

“One month into implementation of this provision, there is strong demand for this new upfront discount, which will continue momentum in growing this industry in the United States,” Treasury Deputy Secretary Wally Adeyemo said in a statement.

The federal tax credit is available in different amounts based on where a vehicle is built and the sourcing of its battery components. Qualifying new plug-in electric and fuel cell vehicles are eligible for up to $7,500, while used vehicles are eligible for as much as $4,000.

A Treasury official told Spectrum News that between January 1 and February 6, the IRS received more than 25,000 time-of-sale reports for new vehicles, 75% of which included requests for payment in advance. It has received more than 3,000 time-of-sale reports for used cars, two-thirds of which are for advance payments.

This year marks the first time auto dealerships are able to offer the credit at the time of sale. More than 11,000 dealerships registered for the program before the deadline last year, 8,000 of which can provide the advance payments.

The Inflation Reduction Act of 2022 made changes to the clean vehicle credit program that was first established through the Energy Independence and Security Act of 2007 to encourage the adoption of low-emissions vehicles.

Under the IRA rules, new electric vehicles can only qualify for the full $7,500 federal tax credit if they are assembled in North America and include battery components sourced from countries that are not a foreign entity of concern, such as China.

The new IRA rule also requires that 40% of the minerals and 50% of the battery components used to make EVs come from North America or a country with which the United States has a free trade agreement. As of December 31, the rule specifies that the federal EV tax credit will not be permitted if any component of the EV battery is sourced from a problematic country.

China makes about 75% of all lithium-ion batteries globally, according to the International Energy Agency. The U.S. makes just 7%. Beyond lithium, about 90% of the minerals used in EVs are processed in China.

The vehicles that qualify for the full $7,500 EV tax credit this year include the Chevrolet Bolt, Chrysler Pacifica plug-in hybrid, Ford F-150 Lightning and various versions of the Tesla Model 3, X and Y.

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

Subscribe To Our Email List

If you ain't first, you're last! Join to get the latest updates and exclusive offers!

Welcome to the club!

Something went wrong.