IN ORDER to get Americans to buy a new or used EV, the government has extended monetary benefits from the original deadline.
As the race towards an all-electric future picks up steam, the Biden administration aims to make it more appealing to buy an EV.
Signed and approved in October of last year, the government has now extended the deadline in order to receive the incentive in 2024 a lot faster and simpler than last year.
Instead of waiting until their tax return to see the credit applied, now the tax credit can be instantly applied to the dealership, which brings the price down instantaneously.
Additionally, it applies to even used EVs, though at a lower credit than a brand new EV.
A new EV would earn a buyer $7,500 off of the sticker price instantaneously, while a used EV would result in a $4,000 tax credit.
Read More about Tax Credit
Ideally, the incentive would appeal to middle-class buyers, who appeared to be detoured from purchasing an EV due to high initial costs, as the average cost of a new EV is over $50,000.
It even includes clauses that benefit low-income shoppers who come with smaller tax liabilities, broadening that audience of potential EV customers.
“It’s great news, especially from an equity standpoint and for people who may not have as much disposable income,” Ingrid Malmgren, policy director at nonprofit Plug In America said, quoted by CNBC.
“It really will make [an EV purchase] more affordable for them.”
However, like all good things, there is always a catch – as Clean Technica reported, there are many dealers who aren’t ready for to accept instant tax credit transfers.
As a result, people had a very difficult time finding dealerships that would give them their discounted price.
Not being able to use that money instantly means a higher sticker price, which then means higher monthly payments – which was a large reason many didn’t buy EVs to begin with.
To give dealerships more room to adjust, the IRS extended the deadline to submit information to an online portal in order to be reimbursed the credit within 72 hours of the sale.
Though, a dealership must be registered within the IRS’s own system to manage the distribution of funds, and if they’re not, then drivers may miss out on getting the instant discount.
Not every dealership is required to register, though with the deadline being extended, it increases the amount of dealerships that can register and offer discounts to customers.
A list of new vehicles that are eligible for the instant discount can be perused here.
If you’re in search of a used EV to get a $4,000 discount, the list of approved vehicles can be browsed here.
