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It doesn’t matter if most EVs don’t even qualify for the tax credit.All over the internet articles & videos popping up looks like in 2024 not only will you be able to get the tax credit up front but also no longer need to have a $7,500 tax liability to claim credit!
EV tax credit expanding, issuing immediate credits in 2024
If you're considering buying an electric vehicle, it's about to get way easier to take advantage of major federal tax credits.
All Tesla do tho, they have a scare tactic "Reductions likely after Dec 31." so at least will still qualify for the 3750 but I'm sure plenty will still qualify for the full 7,500. Big deal for people that exceed the income threshold, already zero out or don't have the 7500 liability.
I can’t even imagine getting the credit up front then you realize you don’t qualify and having to cut a check for $7,500 back to the government.All over the internet articles & videos popping up looks like in 2024 not only will you be able to get the tax credit up front but also no longer need to have a $7,500 tax liability to claim credit!
EV tax credit expanding, issuing immediate credits in 2024
If you're considering buying an electric vehicle, it's about to get way easier to take advantage of major federal tax credits.
I qualify for around $4K so I would owe $3500 in 2025....no thanks. I am waiting for someone who bought a poverty model that got the tax credit to sell next years. I am sure there will be several. Or of Tesla drops the price of the X next quarter I will order a new one.
And the income limit is for the purchase year or the previous year, whichever is lower. So if your 2023 income qualified then you can buy in 2024 without worry.
In 2024, the credit amount can be transferred to the dealer and applied as additional down payment. Your taxes remain exactly the same even if your total taxable liability for the year was less than the credit received.
The law is passed and the IRS guidance so far is in alignment with it.
You are right that the regulations haven't changed.
The new rules just allow a transfer of the credit. You still need to be eligible with tax liability. This whole thing about POS is just a change of who is the one applying for it at purchase time. The buyer still needs to file it during normal tax time.
For the purchase year. You are attesting by signing a form at the dealer saying that your estimated “purchase year” income is eligible under the same income thresholds. If you happen to not be eligible by the end of the purchase year, or your tax liability isn’t covered by the credit, you will owe the IRS the credit amount at tax time. And, maybe they could disqualify your for future EV credits for making a false claim at purchase time. I know they have been known to do so when someone makes a false claim for other tax credits such as the child care credit, education credit, etc.
Where do you see that? That seems to be opposite of IRS guidance:
