Drivers can receive $4,000 to purchase electric vehicles, and it’s easy to qualify – more than 13,000 dealerships will give you the money right on the spot

A NEW tax credit has been instituted at thousands of dealerships across America that will allow drivers to save big on certain electric vehicles.

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

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

It was revealed that more than 13,000 dealerships have signed up to offer the new tax credit that can be granted to customers at the point of sale.

By 2024, this Section 25E credit has already saved electric vehicle buyers $850 million, according to Environmental Energy Leader.

Customers can enjoy their savings almost immediately, with the IRS typically processing advance payments within a week.

MAIN SUPPORT

Some major automakers, such as CarMax Inc. and Carvana Co., have shown support for the initiative.

Carvana Chief Product Officer Dan Gill revealed that he spoke to those present at the Capitol about the incredible deal for customers.

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

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

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

“We are investing in capabilities to help educate the consumer and increase demand for electric 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 support a public database with API integration to serve as a single source of truth for vehicle eligibility.”

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

CarMax announced it will add badges to cars eligible for the tax credit on its website by Jan. 1, according to the company’s press release.

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

Carvana has promised to share the tax credit with online shoppers by the end of the summer as well.

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

ARE YOU ELIGIBLE?

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

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

If clients are married and filing jointly, they are expected to earn $150,000 or less.

They also cannot have claimed another used vehicle in the three years prior to the purchase date

The tax credit is specific to used electric vehicles, to improve accessibility, so it cannot be applied to a used car for resale.