From CNBC: 2024-04-12 10:04:41

A large majority of Americans buying new electric vehicles are choosing to receive the associated $7,500 tax credit upfront from the car dealer rather than waiting until tax season, as shown by new Treasury Department data. Advance payments allow dealers to give discounts to qualifying buyers, reimbursed by the IRS.

These advance payments, created by the Inflation Reduction Act, have been embraced by both new and used EV buyers. The Treasury Department has issued over $580 million in advance payments since January, benefiting consumers and signaling successful implementation of the new provision.

Despite the popularity of advance payments, not all car dealers are participating. Over 13,000 dealers have registered with the IRS Energy Credits Online portal, but this is still a small proportion of all franchised and independent dealers. Additionally, not all EVs or consumers will qualify for the tax break due to manufacturing requirements.

There are currently 36 new EV models eligible for a tax break in 2024, including brands like Acura, Audi, Chevrolet, Ford, and Tesla. Some models qualify for half the tax credit instead of the full $7,500. Income limits for households and thresholds on EV sticker prices are also factors in determining eligibility for the tax credit.

Read more: 90% of qualifying EV buyers get $7,500 tax credit as upfront payment