NewsNationalScripps News

Actions

You may be able to receive your EV tax credit at point of sale in 2024

Changes in tax policies in 2024 may affect the upfront cost of electric vehicles. It's worth considering whether to buy now or wait.
You may be able to receive your EV tax credit at point of sale in 2024
Posted at 7:51 PM, Nov 23, 2023
and last updated 2023-11-23 19:53:02-05

Maybe you love them, or maybe you hate them; maybe you drive them. The reality is that electric vehicles, EVs, and car charging stations are becoming more popular.

Expect plenty of shopping deals this holiday season. But Scripps News has learned one of the biggest deals involving EVs may be a tax policy change on the horizon for 2024.

Let's start with what the current tax incentives are for buying an electric car. Used, new, and leased EVs can qualify for a tax credit.

That credit can be up to $7,500. You need to make under $150,000 a year or $300,000 as a couple to qualify.

There are other stipulations too, like that the final assembly needs to be in North America and batteries need to contain certain materials.

The biggest thing to know is that, currently, you get the money back when you file your taxes each year. In many cases, that can be months of waiting.

But as is the case in most years, the upcoming year ushers in new policies, laws, and tax policies.

SEE MORE: Texas is the latest state to start taxing EV drivers every year

Ingrid Malmgren with Plug in America says the Biden administration is finalizing the steps for dealerships starting in 2024 to give you the money upfront, potentially making that electric vehicle you have been eyeing more affordable. Dealerships would then be reimbursed by the IRS, and that's on top of any local or state incentives.

"Federal EV tax credits for both new and used EVs will be available at the time of purchase. So that means you don't have to wait a year to file your taxes to get that tax credit. It can be used as a down payment; it can reduce your monthly payment," she said.

Based on that, you may be thinking about waiting until January to buy. But Plug in America says it may not be that simple. In fact, the Biden administration may soon say that some vehicles that are eligible for the tax credit now may no longer be eligible next year.

"Depending on the battery in the vehicle you want, it may or may not be eligible anymore. So if you are in love with a vehicle that's currently eligible for the tax credit and you don't mind waiting to get your tax credit until after you file, I would encourage you not to wait," she said.

Final rules are expected to be posted on fueleconomy.gov soon. Of course, whether or not any of this actually inspires people to buy EVs is too early to tell.

According to Pew Research, 38% of Americans are interested in buying an EV compared to last year, but 50% say that they are not at all likely.


Trending stories at Scrippsnews.com