October 2023 the IRS released this clarification that the Inflation Reduction Act will offer the provision that allows consumers to transfer their credit to the car dealer, instantly reducing the purchase price of new and used EVs at the time of sale.
Registration Requirements PDF
This guidance also provides proposed eligibility rules for the previously owned clean vehicles credit. End result is that ELIGIBLE CONSUMERS may transfer the full value of the new or previously owned EV credit regardless of their individual tax liability to the dealership.
Per the IRS press release:
“President Biden’s Investing in America agenda is focused on lowering transportation costs for consumers and giving American car companies the tools to lead the market,” said Chief Implementation Officer for the Inflation Reduction Act Laurel Blatchford. “For the first time, the Inflation Reduction Act allows consumers to reduce the up-front cost of a clean vehicle, expanding consumer choices and helping car dealers expand their businesses. The IRS has focused on streamlining this process for car dealers as part of its commitment to improving service and helping taxpayers claim the credits they are eligible for.”
Later in the month of October, the IRS will allow auto dealerships to register via the IRS Energy Credits Online, this new website will allow the dealerships to signup and take part of this new instant rebate program that the IRS has stated will be a 72 hr turnaround for the dealerships to get the rebate deposited into their bank account.
Benefits for the consumers are that the rebate will be instantly taken off the agreed too purchase price reducing the amount they need to pay via finance, cash or lease.
Full details for those wishing to read the long winded and dry IRS press release is here:
Inflation Reduction Act Rebates
So what do you think about this Instant Rebate for EVs? Good Idea? Will it Jump Start EV sales?
Sound off and let the debate begin!
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