The potential savings depend on whether you’re purchasing a new or used qualified clean vehicle, and if the dealer participates in the point-of-sale rebate program:
New Vehicles
- Up to $7,500 federal tax credit if the vehicle and buyer meet eligibility criteria (e.g., income limits, MSRP caps, and battery/material sourcing rules).
- Dealers can immediately reduce the vehicle’s purchase price by the credit amount at checkout, avoiding the need to wait until tax filing.
Used Vehicles
- Up to $4,000 credit (or 30% of the sale price, whichever is lower) for qualifying used EVs priced under $25,000.
- Dealers can similarly apply this credit as a point-of-sale discount.
Additional Savings
- Home EV charging/energy storage: Up to $1,000 credit for charging equipment or energy storage installation, though this requires separate tax filing and isn’t part of the dealer’s point-of-sale rebate.
Example: If you buy a $40,000 eligible new EV, the dealer could lower the price to $32,500 by applying the full $7,500 credit upfront. For a used EV priced at $20,000, the dealer might reduce the cost to $16,000 via the $4,000 credit.
Key Requirements:
– Dealer registration: The seller must be registered with the IRS to participate.
– Income limits: Modified AGI ≤ $150k (single), $225k (head of household), or $300k (joint filers) for new vehicles; lower thresholds for used EVs.
– Vehicle eligibility: Only models meeting battery and assembly requirements qualify.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-potential-savings-if-the-dealer-passes-on-the-tax-credit-to-me/
