Dealerships Transfer $1 Billion in Electric Vehicle Tax Credits

Car buyers have received more than $1 billion in electric vehicle tax credits through a new program that allows for faster payouts, Treasury Department officials said.

The 2022 tax-and-climate law, known as the Inflation Reduction Act, allowed car dealers to receive advanced payments of the clean vehicle tax credits to transfer those credits directly to the buyer during the sale, rather than the buyer later claiming the credit on their tax return. The program took effect at the beginning of this year.

More than 90% of the new clean vehicle credits transactions and 80% of the previously owned clean vehicle …