300,000 electric cars apply for $2 billion in tax breaks, and you can help

Under the old system, EV buyers would only receive the credit after filing their tax return the following year.

The United States has provided more than $2 billion worth of tax credits to electric car buyers this year, most of which are redeemed at the time of purchase. While the credit is good news for consumers, newly released data does show how much it’s costing the federal government and taxpayers.

Tax credits of up to $7,500 have been provided to more than 250,000 new electric vehicles since Jan. 1, while an additional 50,000 are eligible for rebates of up to $4,000, according to the U.S. Treasury Department and Internal Revenue Service. Used car sold.

READ: Congratulations to taxpayers, you’ve donated more than $1 billion to electric car buyers

While the U.S. government has been offering generous tax incentives in the U.S. for years, it only started offering these credits at the point of sale earlier this year. Data shows that 93% of new EV buyers choose to transfer this credit to the dealer immediately upon purchase, while more than 85% of used EV buyers do the same.

Under the previous system, the only way to claim the $7,500 tax credit was to file a federal income tax return for the year the vehicle was delivered and put into service, meaning shoppers had to wait quite a while for the tax credit to materialize. Now, shoppers will get $7,500 in cash or a reduced down payment if the credit is transferred to the dealer at the point of sale.

“The Biden-Harris administration’s inflation-cutting bill is lowering the upfront costs of electric vehicles and plug-in hybrids, saving Americans more than $2 billion since January,” Treasury Secretary Janet Yellen L. Yellen) said.

“These savings provide consumers with new options and help automakers and dealers attract new customers and grow their business. Consumers will save an average of $21,000 in fuel and maintenance costs over the life of the vehicle, and Protect yourself from gas price fluctuations.”