Treasury Reports $135M in Early EV Tax Rebates Issued in 2024

February 28, 2024: The United States Department of the Treasury has announced the disbursement of approximately $135 million in advance point-of-sale consumer electric vehicle (EV) tax credits since January 1, 2024. This initiative marks a significant milestone in the federal government’s commitment to accelerating the adoption of electric vehicles.

Before amendments to the Inflation Reduction Act in 2023, consumers were required to claim applicable EV tax credits on their annual tax returns. However, the recent legislative changes now allow consumers to transfer the credit directly to a car dealer at the time of purchase, effectively reducing the vehicle’s immediate purchase price.

According to the Treasury Department, the Internal Revenue Service (IRS) has received over 25,000 time-of-sale reports as of early February 2024. Of these reports, approximately 78% included requests for the advance payment option.

Deputy Treasury Secretary Wally Adeyemo acknowledged the strong early demand for the program. He emphasized that the initiative will continue to bolster the growth of the domestic EV industry and support the transition to a clean energy economy.

The advance payment requests are roughly 17,500 new EVs and 2,000 used EVs. In addition, over 11,000 US auto dealers have registered for the program, with more than 8,000 registering specifically for the advanced payment option.

While the program is still in its initial stages, the early figures indicate positive momentum and a growing willingness of consumers and dealers to utilize the advanced point-of-sale tax credit option. The success of this program has the potential to significantly accelerate consumer adoption of EVs and further solidify the United States’ position as a leader in electric vehicle innovation and manufacturing.