Have you heard about the new option for receiving tax credits upfront when purchasing a qualifying electric vehicle? At Extreme Investor Network, we are excited to share with you the latest data from the Treasury Department indicating that an overwhelming 90% of consumers are choosing to take advantage of this new financial mechanism.
This advance payment option, created by the Inflation Reduction Act signed by President Biden, allows dealers to give qualifying buyers an upfront discount of up to $7,500 on their electric vehicle purchase. This upfront cash can be used as a partial payment, down payment, or even as cash in hand for the consumer. The IRS then reimburses the dealer for the tax credit.
Previously, buyers had to wait until tax season to claim their tax credits, meaning they may have to wait months for their tax break. With advance payments, eligible buyers receive the full value of the credit regardless of their tax liability, making it accessible to households with lower annual tax burdens as well.
Furthermore, advance payments are not only available for new electric vehicles but also for used EVs, with a tax credit worth up to $4,000. This new option can significantly help in making electric vehicles more affordable for consumers by reducing the need for additional funds for down payments and lowering monthly car payments and overall interest charges.
While the demand for advance payments is high, it’s important to note that not all car dealers are currently participating. Over 13,000 dealers have registered with the IRS Energy Credits Online portal, but with over 16,000 franchised retail car dealers in the U.S., there is still room for growth in participation.
Additionally, not all EV models or consumers will qualify for the tax break, as there are manufacturing requirements and other eligibility criteria to consider. However, with 36 new EV models currently available for tax breaks in 2024, including brands like Tesla, Chevrolet, Ford, and more, there are plenty of options for consumers looking to make the switch to electric.
At Extreme Investor Network, we believe that staying informed about the latest financial tools and options can help you make smarter investment decisions. Be sure to check back for more updates and insights on how to maximize your investment opportunities in the ever-evolving world of finance.
