Understanding the Changes to the EV Tax Credit in 2024

🚗The EV tax credit is a federal incentive to encourage Americans to choose EVs over gas cars.

💰You can now apply the full tax credit as a discount at the dealership, making it more convenient for buyers.

💸If your income exceeds certain limits, you will have to pay back the tax credit to the IRS when you file your taxes.

🔋To qualify for the full tax credit, an EV must meet certain criteria, including final assembly location and battery components.

📜There is a limited number of EVs currently eligible for the full tax credit, so check the updated list before making a purchase.

What is the EV tax credit?

—The EV tax credit is a federal incentive that provides up to $7,500 in tax breaks for buying an electric car or plug-in hybrid.

Can I apply the tax credit as a discount at the dealership?

—Yes, starting in 2024, you can transfer the tax credit to the dealership and have it applied to the price of the car at the time of sale.

What happens if my income exceeds the limits?

—If your income exceeds the limits, you will have to pay back the tax credit to the IRS when you file your taxes.

What are the criteria for an EV to qualify for the full tax credit?

—An EV must meet criteria such as final assembly location in the US, Canada, or Mexico, and a certain percentage of batteries or components manufactured or assembled in the United States or a country with a free trade agreement with the US.

How many EVs currently qualify for the full tax credit?

—As of now, there are only a few EVs that qualify for the full $7,500 tax credit. It's important to check the updated list before making a purchase.

00:00The federal EV tax credit has undergone changes in 2024, making it more useful for buyers.

01:14You can now apply the full tax credit as a discount at the dealership, simplifying the process.

01:32If your income exceeds certain limits, you will have to pay back the tax credit to the IRS.

02:47An EV must meet criteria such as final assembly location and battery components to qualify for the full tax credit.

03:55There are only a few EVs currently eligible for the full tax credit, so it's important to check the updated list before purchasing.