"Instant EV Rebates: New Rules and Improved Tax Credits for Car Buyers"

The Treasury Department has provided guidance on how car dealers can offer immediate access to federal tax credits for electric vehicles (EVs), aiming to encourage more people, especially lower-income buyers, to purchase EVs. The guidance allows dealers to reduce the price of an EV by up to $7,500 at the time of purchase, rather than waiting for the annual tax filing. The Biden administration hopes this immediate refund will boost EV sales and help achieve its goal of 50% EV market share by 2030. Dealers must register with the IRS to offer the credit at the point of sale, and buyers must confirm they meet the income limit. The proposed rule makes the EV tax credit refundable, and dealers can expect to be refunded within 72 hours of a sale.