Dealers are starting to sweat. Starting next year buyers will be able to apply the EV Tax credit directly to the sale price of an EV. But as Automotive News reports, dealers are worried the government won’t pay them back in a timely manner.
Starting in 2024, the EV tax credit will work very differently than it does now. Currently, if you buy a brand new EV that qualifies, you’re eligible for a $7,500 tax credit. It’s not a discount, even though car companies and others calculate EV prices as if it is. The credit only really works against a tax liability; if you owe less than the credit, you can’t really take full advantage of it. At best, you’ll end up paying less in taxes
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