America’s electric vehicle tax credits are changing yet again, and this time they’re going to be more accessible than ever. If you’ve been waiting to buy an EV, now might be the moment you’ve been holding out for.\u00a0<\/p>\n
Last year, the\u00a0Inflation Reduction Act introduced a new set of modernized tax credits for new and used electric and plug-in hybrid cars. But starting January 2024, they’ll be less like breaks you can claim on your annual tax refund and more like discounts you can apply to a car right when you buy or lease it.\u00a0<\/span><\/p>\n Buyers of new and used “clean vehicles” will soon be able to transfer the credit amount to the point of sale, meaning<\/span>\u00a0they can theoretically drive out of a dealership or retail location with an EV for significantly less money than before\u2014no waiting for their money back in April or later. Effectively, a dealership will take the credit amount off the vehicle\u2019s price, and then the IRS will repay the dealership within 72 hours of a completed transaction.\u00a0<\/span><\/p>\n Yeah, it’s a big deal. While the IRS\u2019 updated rules\u00a0are new, they were not unexpected. When the Inflation Reduction Act was passed in August 2022, the original legislation mentioned that the point-of-sale feature would begin in 2024. However, there was little information about how it would work. Today, the IRS is making this information public.\u00a0<\/span><\/p>\n Here’s what we know and how it affects you.\u00a0<\/span><\/p>\n