Tax incentives

US EV buyers to get instant tax credit

A significant change to the EV tax credit process in the US will soon allow buyers to receive the credit at the point of purchase, instead of waiting to claim it on their tax returns. This comes as the Internal Revenue Service (IRS) introduced new procedures enabling car dealers to deduct the EV tax credit from the sales price, effective from January 1, 2024. However, buyers still need to have sufficient federal tax liability to fully benefit from this.