Instant EV Tax Credits: Dealerships to Offer Upfront Reimbursements

Starting in January, car buyers shopping for electric vehicles (EVs) in the US will be able to receive a $7,500 federal tax credit at the dealership, rather than waiting for their tax returns. The changes, announced by the Biden administration, aim to make EVs more affordable and accessible. Under the new guidance, buyers can either deduct $7,500 off the sticker price of a new EV or $4,000 off the cost of a used EV. The upfront tax credit is expected to encourage more people, especially lower-income households and buyers of used vehicles, to choose EVs. Car dealers will be reimbursed by the government within 72 hours of selling the vehicle.