In 2024, EV buyers may get instant rebate of up to $7,500 | Mashable.
EV buyers will get up to $7,500 in instant rebates next year — here's how to qualify
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| EVs in the U.S. are about to get even easier to get. Credit: Anadolu Agency / Getty Images |
Need another incentive to buy an electric vehicle? The Biden administration just gave you one.
New guidance from the Treasury Department, released on Oct. 6, explains how the $7,500 tax credit for electric vehicle purchases can become cash that the buyers get when they purchase their car.
Right now, when you buy an eligible EV in the U.S., you can use up to $7,500 worth of credit when you file your tax return next year.
Under the new scheme, effective January 2024, buyers should be able to transfer the tax credit to a car dealer as they purchase the car, meaning they could basically get the car for that much less.
There's a big difference between buying a car for less right now and getting a tax credit that you can only use next year, so it's likely that the new guidance will further increase the already booming EV sales.
Not all EVs will qualify. For example, only cars "powered to a significant extent by an electric motor with a battery of 7 kilowatt hours or more" will be eligible for the credit. A list of vehicles that qualify can be found over at fueleconomy.gov.
There are also a few steps both dealers and consumers will have to take before they can take part in the scheme. Participating dealers will have to register on a new IRS website, and buyers will have to attest that they meet income limits in order to qualify for the tax credit. Check out the updated FAQ from the IRS here.
The new guidance is part of Biden administration's efforts to encourage EV ownership, with the goal of having 50 percent of all new vehicle sales be electric by 2030.
Topics Cars
But can the old electric grid handle it... GREEN NEW DEAL AND INFRASTRUCTURE NOW!!!
ReplyDeletethe government will raise the rate of electricity .
Deletenope
DeleteNo thanks
ReplyDeleteYou will only drive when the government says you can 🤡
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ReplyDeleteNo one wants to get poor, No one wants to suffer, No one is destined for pains .. We all have to strive hard to achieve our goals in life because success waits for no one. A bold step of positivity brings about a huge ways to success Mrs Alice Katherine Fx
ReplyDeleteHuge news
ReplyDeleteall we need to make electric cars popular is for the government to use more taxes and debt to bribe people to buy them and penalize everyone who doesn't. Makes sense to me.
ReplyDeleteGood. This streamlines the process.
ReplyDeleteIf we can never complete our property tax liability, we will always be indentured to the Federal government. No freedom there.
ReplyDeleteWhat federal property tax liability are you referring to?
DeleteDid that make more sense when you heard it from the voices in your head?
DeleteAll the vehicles are American made or assembled in the USA. Socialism for the rich, Capitalism for the poor. Just let the Chinese EVs access the US market, expose the US auto industry to competition, and keep your rebate.
ReplyDeleteChange is hard! I'm more concerned about inflated housing prices and the property taxes they generate for the federal government!
ReplyDeleteWho exactly is paying for these EV rebates? The stupid taxpayer of course, without his consent. Taxation w/o representation is what Bidenomics is all about
ReplyDeleteAgain I will wait for them to give them away and install the electric system to charge it and pay my electric bill.
ReplyDeleteSo taxpayers are once again subsidizing green foolishness.
ReplyDeleteUsing income levels without any consideration for local cost of living is a great disservice to would be EV purchasers. $150k in Missouri is rich, in places like SF Bay Area it’s really not much. Sigh, guess I’m keeping my ICE till prices without tax credit come down.
ReplyDeleteThe more recent article on this topic should be of great interest to you in that case.
Delete"The buyer must give the dealer all their tax information, which will then be submitted to the IRS."
ReplyDeleteThat's gonna be a big "nope" from me.
A better option would be to give the dealer your SSN(s) and have an IRS portal that just returns "yes" or "no" for eligibility. That's probably way too efficient and privacy focused.
dude is incorrect, you don’t provide anything intrusive, ID, SSN and some attesting that you meet the eligibility requirements
DeleteBasically the same stuff you need to buy a car with now plus checking boxes on a form and signing your name
you still file for the credit, but now it gets you dinged for $7500 if it turns out you didn’t qualify after all
The IRS doesn’t know if you qualify until you file your return
Thanks for clarifying, that sounds much more reasonable.
DeleteYes, it would suck to get dinged for the $7500 if you mis-calcuate your AGI, but presumably folks who are that close to the line can just choose to not take the credit at the time of purchase.
The dealer still needs to collect the car buyer's taxpayer ID/TIN and government issued ID so that they can file it with the IRS, along with the attestations that you mentioned, as part of the transfer credit.
DeleteBut, you are correct, the buyer still needs to file the correct forms on their tax returns so that the IRS can determine whether you lied and ding you for it. The dealer is not responsible to look at your AGI or determine eligibility in any way.
Correct. No one knows what their tax liability is until the tax return is completed.
DeleteIt is interesting language in the PDF. I will get my tax advisor let me know what this means. As someone who just retired I no longer have the income to get the full tax credit (unless I do extra Roth conversions).
So, if I understand correctly, you're basically just taking out a loan from the dealer against next year's tax return?
DeleteIf a buyer somehow ends up not qualifying after all, I assume the buyer is obligated to pay back the dealer...
Another concern is: is there anything to prevent dealers from giving a buyer $3,000 off a car in exchange for their full $7500 tax credit?
That's huge. I was dead set on buying an EX30 next year. But if I can take 7.5K off the purchase price of a qualifying EV that might change my decision.
ReplyDeletegoood .... goooood ... keep them chinese out of our market for just a little longer
DeleteClarifying question about AGI - If you make a BEV purchase in 2024, is it based on your 2023 AGI? If you then file your 2024 taxes and you are past the qualifying threshold are your on the hook for the $7500?
ReplyDeleteThis comment has been removed by a blog administrator.
DeleteYup. During purchase, you have to attest that your 2023 AGI qualifies you, along with your estimated 2024 AGI.
DeleteWhen you file your returns in 2025 and it turns out that your 2024 AGI actually does not qualify you, then you will be on the hook for the mistaken upfront discount you received on your EV purchase.
You can always opt to not transfer the tax credit to the dealer for the upfront discount at purchase, and instead file for the rebate traditionally in the following year during tax return time.
The IRS telling me if I can get the EV tax credit in 2024
Deletehttps://giphy.com/gifs/theoffice-fIkT0LdGUc4GushZ2Q
I haven't delved into this topic much so far but from a read of the IRS, it looks like they'll only recapture if you don't qualify based on AGI. Seems like you can still transfer full credit without being dinged even if you have insufficient tax liability. Might be my understanding that's wrong but thats how I read it
ReplyDeleteI wouldn't test the IRS. But, that's me just me, personally.
DeleteYou are correct that they will only recapture if you end up not qualifying based on the purchase year's AGI. But, if I knew I was going to be on the border of whether I fully qualify or not based on my estimates, I would probably just take the credit traditionally through tax return. There's no clear wording on whether the full $7,500 is clawed back or just the eligible amount based on your tax liability before credits.
But, if IRS treats ineligibility of the EV tax credit in the same way they do to false attestations for other tax credits such as EITC, CTC, etc., I would not gamble with having to pay a fine, interest, and/or be ineligible to claim the EV tax credit (whether by transfer or tax return) for future EV purchases.
Agree in not "testing" the IRS. It's possible to get clarification via a tax advisor rather than depend upon comments on the internet. I'll be asking my tax advisor so I am prepared for my next EV purchase. I probably won't qualify for the full $7,500 like I did the last 3 times.
DeleteI just read Jameson's article, and while I don't think he's a tax advisor, it pretty explicitly addresses this topic:
Deletehttps://electrek.co/2023/10/06/ev-tax-credit-changes-mean-low-income-buyers-can-now-get-full-7500/
This comment has been removed by a blog administrator.
ReplyDeletewill increase the price of EVs by 8k, citing "reasons"
ReplyDeleteHah! Exactly. Just like anytime there is a support plan for subsidizing college tuition the cost of college mysteriously goes up to match the plan.
DeleteThat's why we've spent the past 40 or so years repeatedly slashing funding to colleges. College used to be something you could afford by working a part time job, but thanks to our repeated funding cuts, an education often results in a lifetime of debt. I can't image how much college would cost if we did something crazy like fund it. No one could afford it then!
DeleteGrants and loans can both increase the net cost if education for everyone.
Delete