Treasury reports rising uptake of instant EV rebate

Source: By James Bikales, E&E News • Posted: Monday, April 15, 2024

The department has reimbursed car dealers more than $580 million for offering the credit since January.

A line of unsold 2023 electric ID.4 sports-utility vehicles sit at a Volkswagen dealership.

Most eligible electric vehicle buyers are claiming the federal tax credit as an instant rebate at the dealership, according to the Treasury Department. David Zalubowski/AP

Around 90 percent of qualifying electric vehicle buyers have opted to claim their federal tax credit as an instant rebate at the dealership this year, a positive sign for President Joe Biden’s efforts to boost EV sales.

The Biden administration launched the point-of-sale rebate in January. The new rules allow dealers to take the credit of up to $7,500 off the sticker price of the car or provide the rebate in cash, and receive a reimbursement from the federal government within days. Prior to Jan. 1, EV buyers had to wait to claim the credit until they filed their taxes the following year.

The Treasury Department said Friday that more than 100,000 people have claimed the credit for new and used EVs since the beginning of the year, and it has reimbursed car dealers more than $580 million for offering the credit at the point of sale.

“Demand is high four months into implementation of this new provision with American consumers saving more than half a billion dollars,” Treasury spokesperson Haris Talwar said in a statement.