Treasury Proposes Rule for Car Dealers to Offer Immediate EV Tax Credits at Point of Sale.

The Treasury Department has proposed a new rule that car dealers can give customers immediate access to federal tax credits for electric vehicles. The proposed rule would allow dealers to reduce the price for an EV for consumers by up to $7,500 at the time of the purchase, rather than requiring the buyers to file their annual federal taxes to claim the credit. The administration hopes the immediate refund will help dealers sell more electric cars and meet President Joe Biden’s goal of lifting EVs to 50 percent of new car sales by 2030. A 2022 George Washington University study found that EV buyers overwhelmingly preferred a point-of-sale rebate to a tax credit, valuing the rebate at $1,450 more than a credit. Dealers must register with the IRS to be eligible to offer the credit at point of sale, and buyers must attest they will not exceed the tax credit”s income limit. With the EV credit, Treasury said it expects to refund dealers within 72 hours of a sale.