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Want to Buy an Electric Vehicle? You Could Get $7,500 Tax Credit in Cash

Source: MSN

Electric vehicle ownership in North Carolina has surged in the last two years. According to the Independent Tribune, North Carolina has over 70,000 registered electric vehicles as drivers across the state have taken advantage of EV-related tax credits included in the federal Inflation Reduction Act.

A newly proposed incentive could bring the number higher, as the U.S. Treasury Department announced that the $7,500 EV tax credit will be available as cash in hand on the day of purchase.

The Inflation Reduction Act, signed into law by President Joe Biden in August 2022, originally offered an instant incentive to make electric vehicles more accessible for drivers through tax credits of up to $7,500 for the purchase of qualifying EVs.

The U.S. Treasury Department’s latest announcement adds further incentive for drivers considering the electric vehicle move.

According to NPR, from January 2024 on, customers will not have to wait for next year’s tax season before getting their hands on the incentive. Instead, the credit will be available as cash in hand on the day of purchase, regardless of the size of a customer’s tax bill.

“For the first time, the Inflation Reduction Act allows consumers to reduce the up-front cost of a clean vehicle, expanding consumer choices and helping car dealers expand their businesses,” an announcement from the United States Department of the Treasury stated.

“The IRS has focused on streamlining this process for car dealers as part of its commitment to improving service and helping taxpayers claim the credits they are eligible for.”

On top of the incentive, the process of obtaining an electric vehicle will be easier for both the customer and dealership. 

NPR reports that dealers will register with the IRS and confirm that a vehicle qualifies for the tax credit, using the vehicle identification number — taking the burden off of customers who are navigating the shifting rules.

Read more about the announcement here

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