Since the start of 2024, more than 300,000 electric vehicle buyers have collectively saved more than $2 billion through the U.S. Department of the Treasury and IRS’ new point-of-sale tax credit program, the agencies announced in a joint statement.
This initiative, introduced as part of the Biden-Harris Administration's efforts to make clean energy vehicles more affordable, allows consumers to immediately apply tax credits when purchasing new or used EVs, rather than waiting until tax season.
The new program, introduced last October, allows eligible buyers to apply a credit of up to $7,500 for new EVs or up to $4,000 for used EVs. According to the news release, 93% of new vehicle transactions and 85% of used vehicle transactions involved a transfer of credit directly to the dealership, meaning the vehicle price is immediately lowered by the amount of the credit.
For buyers, the ability to instantly benefit from the tax credit has made the program highly popular and a significant improvement from previous years when credits had to be redeemed during tax filing.
Of the 300,000 transactions so far, more than 250,000 applied to new clean vehicles, demonstrating significant interest in EVs as consumers look for ways to reduce transportation costs while also adopting more environmentally friendly technologies. A 2022 analysis by Energy Innovation showed EV buyers could save $1,750 annually on average on fuel and maintenance costs, which would total $21,000 of discounted savings over the typical 15-year lifespan of an EV compared to a comparable gasoline vehicle.
