From Fortune Media Group Holdings:

The IRS will reward EV buyers with up to $7,500 in tax incentives, which can be immediately taken advantage of at the dealership. This comes as a much-needed boost for the struggling EV sector due to slowing demand and competition from foreign manufacturers. The policy changes in 2024 have also made it more difficult for many vehicles to qualify for the tax credit. However, there is a small caveat – buyers have to ensure they remain eligible for the tax credit between the time of purchase and tax season the following year. If they lose eligibility during that time, they may have to give back the $7,500. American manufacturers in particular are struggling to compete with the low prices and production targets from Chinese manufacturers.



Read more: IRS sweetens EV incentives by allowing $7,500 credit upfront