EV Tax Credits Can Now Be Down Payments
Federal guidance says that starting Jan. 1, consumers can transfer them to dealers instead of waiting till tax time.
Dealers must register with the Internal Revenue Service in order to participate in the transfers.
IMAGE: Pexels/Karolina Grabowska
New guidance on federal electric-vehicle tax credits allows consumers to get the breaks at the point of purchase rather than having to wait till tax time.
The U.S. treasury department guidelines will allow EV buyers starting Jan. 1 to transfer their credits to dealers, essentially providing them with up to $7,500 for a down payment.
Dealers will be paid within 72 hours of electronically submitting information on a tax credit transfer from a consumer, the treasury department said.
Buyers of new EVs can get up to $7,500 in tax credits on an eligible purchase if they meet income requirements and up to $4,000 on a used vehicle.
Dealers must register with the Internal Revenue Service in order to participate in the transfers.
Under proposed rules, the transfers would generally not affect dealers’ tax liability and not be included in the consumer’s gross income. The treasury department said it and the IRS will take public comment on those proposals before issuing final rules.
Originally posted on Auto Dealer Today
More Industry
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →