US Government To Have Given $135 Million Reimbursement To Auto Buyers In The US Through The EV Tax Rebates

Through the new rebate programs, auto buyers are encouraged to purchase electric vehicles.

New policies are even introduced in these rebate programs to further encourage auto buyers in purchasing EVs. (Photo: Investopedia)

US Auto Buyers

The U.S. government has reimbursed auto buyers with about $135 million in advance point-of-sale consumer electric vehicle tax credit payments so far this year. Previously, auto buyers could only use the tax credit when filing their tax returns the following year.

A new policy now allows auto buyers to transfer the credit to a car dealer at the time of sale. Since January 1, more than 25,000 time-of-sale reports have been received, with a majority of the auto buyers requesting advance payments.

The Treasury believes this upfront discount will help stimulate the growth of the electric vehicle market and encourage auto buyers in the United States. Over 11,000 auto buyers have also registered for the program.

According to a published article by SmartNews, despite efforts to encourage auto buyers, the January implementation of battery-sourcing rules caused many EV models to lose their eligibility for tax credits.

To qualify for the tax credit, auto buyers must meet income limits, and the vehicles must be assembled in North America.

43 To 19 Models

In a published article by CBT News, the government has also implemented new restrictions which has reduced the number of eligible models from 43 to 19. It is unclear whether the improved rebate transfer process has offset any reduction in demand.

Some automakers, including Ford and General Motors, have postponed investments in electric vehicle production due to slower consumer interest.

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