According to new guidance released by the IRS, car dealers will be able to provide buyers with an instant rebate for purchasing certain electric vehicles starting in January of 2024. The memo states that eligible vehicles may qualify for a tax credit of up to $7,500. However, the amount of the credit will depend on whether the EV and its buyer meet specific requirements, as well as the timing of the car purchase.
In order for an electric car to be eligible, it must have a minimum battery capacity of seven kilowatt hours. Buyers will not be able to claim the credit if their adjusted gross income exceeds certain thresholds – $300,000 for married couples filing jointly, and $150,000 for the majority of single taxpayers. Additionally, the manufacturer’s suggested retail price for the EV cannot exceed certain price points. For sport utility vehicles and pickup trucks, the cap is $80,000. However, for regular electric vehicles to qualify, they must not exceed $55,000, which significantly limits the benefit for cheaper car manufacturers. While this is a…
2023-10-06 16:12:24
Source from www.engadget.com rnrn