US issues $135 million in advance EV tax rebates since Jan 1, Treasury says
By David Shepardson
WASHINGTON (Reuters) — The U.S. government has reimbursed auto dealers for about $135 million in advance point-of-sale consumer electric vehicle tax credit payments since the start of the year through Feb. 6, the Treasury said on Wednesday.
Prior to 2024, U.S. auto buyers could only take advantage of the $7,500 new electric vehicle credit or $4,000 used EV credit when they filed tax returns the following year.
Starting Jan. 1, consumers can transfer the credits to a car dealer at the time of sale, effectively lowering the vehicle’s purchase price.
The Internal Revenue Service has received more than 25,000 time of sale reports, including more than 19,500 — or 78% — with advance payment requests and approximately $135 million has been paid to dealers since Jan. 1, Treasury said in disclosing the previously unreported figures.
«One month into implementation of this provision, there is strong demand for this new upfront discount, which will continue momentum in growing this industry in the United States,» Deputy Treasury Secretary Wally Adeyemo said in a statement.
The advance payment requests include 17,500 for new EVs and 2,000 for used vehicles. More than 11,000 U.S. auto dealers have registered for the program, including more than 8,000 registered for advanced payments.
In January, many EVs lost eligibility for tax credits after new battery sourcing rules took effect, including the Nissan (OTC:NSANY) Leaf, some Tesla (NASDAQ:TSLA) Model 3s, Chevrolet Blazer EV, Cadillac Lyriq, Ford (NYSE:F) Mach-E and Ford E-Transit.
The Treasury issued guidelines in December aimed at weaning the U.S. electric vehicle supply chain away from China. The number of EV models qualifying for U.S. EV tax credits fell on
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