WASHINGTON —The US government has issued $2 billion in advance consumer EV tax credit payments at the point of sale since January 1 covering more than 300,000 vehicles, the Treasury Department said on October 1.
Since new rules went into effect this year allowing consumers to take advantage of electric vehicle tax credits worth up to $7,500 at the point of sale, more than 250,000 tax credits have been issued for new electric vehicles and about 50,000 for used models with rebates of up to $4,000. .
Almost all of them involve transferring credit to the car dealer at the time of purchase resulting in significant price cuts.
The Inflation Reduction Act of 2022 creates point-of-sale rebates as well as a used electric vehicle tax credit, repeals the credit limit for 200,000 vehicle manufacturers, imposes income and vehicle price limits, and provides a credit for leased vehicles.
The administration also imposed new restrictions designed to keep the electric vehicle and battery supply chain away from China, including requiring all electric vehicles to be assembled in North America to qualify for the credit.
The Treasury Department on Oct. 1 released a new analysis from the Office of Economic Policy that estimates electric vehicle owners will save $18,000 to $24,000 more than people who buy comparable gasoline vehicles. This analysis calculates estimated annual savings assuming a vehicle life of 15 years.
“These savings give consumers new choices and help automakers and dealers to attract new customers and grow their businesses,” said Treasury Secretary Janet Yellen who added “consumers will save an average of $21,000 on fuel and maintenance over the life of their vehicles and become more efficient. protected from gasoline price volatility.”
Consumers must prove they meet income limits to qualify for the tax credit at the time of purchase or must pay it back to the government when filing taxes. For new vehicles, the adjusted gross income limit is $300,000 for married couples and $150,000 for individuals.