Drivers can get $4,000 to buy EV and it’s easy to qualify

A NEW tax credit has been instated in thousands of dealerships around America which will allow drivers to save big time on certain electric vehicles.

The White House and the Treasury Department announced that electric vehicle drivers can potentially save up to $4,000 on their next purchase.

Section 25E of the Inflation Reduction Act allows consumers a tax credit on their next used electric vehicle purchase.

It was revealed that over 13,000 dealerships have registered to offer the new tax credit that can be given to customers at the point of sale.

In 2024, this credit from section 25E has already saved electric vehicle buyers $850 million, according to Environment Energy Leader.

Customers get to enjoy their savings almost immediately with the IRS processing the advanced payments typically within a week.

MAJOR SUPPORT

Some of the top car companies like CarMax Inc. and Carvana Co. have shown support for the initiative.

Carvana Chief Product Officer Dan Gill revealed that he spoke to those on Capitol Hill about the amazing deal for customers.

“Our mission has always been to use technology to make car buying as transparent and frictionless as possible, and we’re committed to fully integrating the merchandising and redemption of the tax credit into our experience to maximize adoption and help with EV/PHEV affordability for as many customers as possible.” Gill wrote in a LinkedIn post.

CarMax Chief Innovation and Strategy Officer Jim Lyski also showed support for the new initiative, announcing that the company is working with its subsidiary Edmunds to push the initiative.

The company has a tool to look up options for tax credits, incentives, and rebates that can apply to the purchase or lease of electric cars.

“We are investing in capabilities to help educate the consumer and grow the demand for EV and hybrid vehicles,” Lyski said in a statement provided to Automotive News.

“We are excited to incorporate incentives and credits into the checkout process for CarMax customers in the future, and are in support of a public database with API integration to serve as a single source of truth for vehicle eligibility.”

Both companies have committed to helping car owners take advantage of the credit.

CarMax announced that they will be adding badges to cars that are eligible for the tax credit to its website by January 1, according to the company’s news release.

It will also allow those who want to shop online to adjust their filters to only tax credit-eligible EVs.

Carvana pledged to make the tax credit known to online shoppers as well by the end of the summer.

The company claimed that shoppers will be able to see the price adjusted with the tax credit at checkout.

ARE YOU ELIGIBLE?

While this is a great opportunity for future buyers, not everyone qualifies.

To be eligible for the tax credit, individuals must earn less than $75,000 a year, according to the IRS.

If customers are married and file jointly, they are expected to make $150,000 or less.

They also cannot have claimed another used vehicle within the three years before the purchase date

The tax credit is specifically for used electric vehicles, to enhance affordability, so this cannot be applied to a car used for resale.