Americans Utilize Electric Car Tax Credits

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.

New Opportunities for Electric Vehicle Owners

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

Direct Credit Transfer for Down Payments

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

Usage Statistics

The IRS reported this month that of the approximately 25,000 Americans who used the credit this year, more than 19,500 took the opportunity to use it upfront. The advance payment requests include 17,500 for new EVs and 2,000 for used vehicles, according to Reuters.

Dealers Involved

Dealers have to register to receive the down payment. More than 11,000 dealers have registered to offer the credit, as reported by Politico.

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