Not all dealerships pass on the tax credit savings to consumers. To pass on the savings, dealerships must register with the IRS to qualify for the point-of-sale rebate program. This program allows eligible consumers to receive the tax credit as a discount at the time of purchase, rather than claiming it later on their tax return. Only dealerships that have registered and meet the necessary criteria can offer this benefit, so consumers should check with their dealer to see if they participate in the program. Additionally, the program started in 2024 and includes income limits for eligibility.
Here are the key points:
- Dealer Registration: Dealers must register with the IRS to offer the tax credit at the point of sale.
- Eligibility: Both the vehicle and the consumer must meet eligibility criteria, including income limits.
- Point of Sale Rebate: Eligible consumers can receive the credit as a discount or cash refund, but this depends on the dealer’s participation in the program.
- Form 8936: Regardless of how the credit is received, consumers must file Form 8936 with their tax return if they claim the credit themselves.
It’s essential to verify that a dealership is registered and willing to pass on the tax credit savings before making a purchase.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/do-all-dealerships-pass-on-the-tax-credit-savings-to-consumers/
