Tax Credit Direct From the Dealer for EV Buyers in 2024

by Mindy Cohn

According to the Internal Revenue Service, instead of waiting months to put an electric vehicle (EV) credit on a tax return, starting in January, those who purchase an EV will get up to $7,500 off the purchase directly from the dealership instead.

The move is meant to create additional interest in the EV market, an effort that began with the tax breaks offered in the 2022 Inflation Reduction Act.

Waiting for this improvement in the refund process might not be the best idea for every EV buyer, though. 

As the list of eligible vehicles is constantly changing, with more changes expected in 2024, it is recommended that those focused on a specific vehicle should buy now if there is a rebate for that particular vehicle. 

For those who qualify for the income limits this year of $150,000 for individuals and $300,000 for married couples filing jointly, but who might go over that limit next year, it might also pay to buy this year to get whatever credit is offered.