In 2024, prospective buyers of electric vehicles will encounter a combination of favorable and difficult circumstances with regard to the federal tax credit. Stricter qualifying requirements and a smaller number of qualifying vehicles may provide challenges, even as an instant rebate option is expected to make collecting the $7,500 credit easier. With the help of these tax credits, the Biden administration hopes to reduce carbon emissions and hasten the transition to electric automobiles.
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Quick Rebate Makes the Process Easier
Instead of waiting until the next tax season, dealerships will now provide an instant rebate on the day of purchase. Buyers must verify their eligibility; the dealer fronts the credit, which the IRS then reimburses.
Tougher specifications include cars with sticker prices under $55,000 for cars and $80,000 for SUVs and trucks, as well as cars built in North America. Buyers must satisfy the income cap requirements, which, depending on filing status, can range from $150,000 to $300,000.
Leased cars are less constrained and do not have to meet price caps or Made-in-America requirements, making them a more affordable choice. The tax credit is applied at the beginning of the lease as a bonus, improving affordability.
READ ALSO:Â New York Homeowners Have 12 Days Left To Apply For Up To $1,407 Rebate
Used EVs Are Also Accepted
The market for used electric vehicles is given attention, and a tax credit of up to $4,000 (30% of the sales price) is offered.
Because the income cap and price cap criteria are lower, it’s a more affordable option for buyers on a tight budget.
