IRS Boosts EV Adoption with Tax Credit Push as Dealers Embrace Point-of-Sale Credits
The IRS has stepped up efforts to inform the public about tax credits for electric vehicles (EVs), aiming to boost registrations. Meanwhile, the number of eligible 2024 models has fluctuated, and car dealers are embracing point-of-sale credits.
Initially, 35 MY 2024 EVs were eligible for the credits, but this number dropped to 14 at the start of the year. Notably, most Volkswagen ID.4 models regained eligibility last month, increasing the count to 20.
Car dealers have been proactive, submitting over 25,000 time-of-sale reports since January, with 78% including an advanced payment request. This initiative allows consumers to use their tax credits upfront, potentially lowering vehicle prices and encouraging EV adoption.
The U.S. Treasury Department has reimbursed dealers around $135 million in advance payments between Jan. 1 and Feb. 6. As of now, over 8,000 of the 11,000 registered dealers have received these payments.
General Motors has also stepped in, offering up to $7,500 in additional incentives for EVs that lost federal credit eligibility. In 2024, major automakers like Tesla, Ford, General Motors, Hyundai, and Toyota released models qualifying for the US clean vehicle tax credits.
The IRS's educational initiatives and the dealers' embrace of point-of-sale credits are expected to drive EV adoption. With automakers introducing eligible models and dealers receiving advance payments, the EV market is poised for growth.
