The bulk of Americans buying qualifying new electric vehicles are opting to receive an associated tax credit upfront from the car dealer instead of waiting until tax season, according to new Treasury Department data.
About 90% of consumers who qualify for a "new clean vehicle" tax credit — worth up to $7,500 — have requested their tax break be issued as an advance payment, according to a Treasury Department official speaking on background.
They allow dealers to give an upfront discount to qualifying buyers, delivered as a partial EV payment, down payment or cash payment to consumers.
Not everyone will necessarily qualify for the full $7,500, depending on factors like the type of car that's purchased.
Previously, all EV buyers had to wait until tax season the year following their purchase to claim tax credits related to that purchase, meaning they may wait several months or longer for their tax break.
Persons:
Ingrid Malmgren, Biden, that's
Organizations:
Treasury Department, EV, IRS