Starting next year, people who want to buy a new or used electric or plug-in hybrid vehicle will be able to get U.S. income tax credits at the time of purchase
FILE - A DC fast charging station manufactured by Sumitomo Electric works at Fully Charged Live, an electric vehicle, renewable and clean energy and urban mobility exhibition, in Vancouver, British Columbia, Sept. 8, 2023. The window to limit human-caused warming to a globally agreed goal is narrowing but still open because of the huge growth of solar energy and electric vehicles sales worldwide, a report said Tuesday, Sept. 26.
Under the Inflation Reduction Act, which included the credits, buyers can transfer the credits to dealers, which can apply them at the point of sale starting Jan. 1. To be eligible, electric vehicles or plug-ins have to be manufactured in North America. SUVs, vans and trucks can’t have a sticker price greater than $80,000, while cars can’t sticker for more than $55,000.There also are income limits for buyers set up to stop wealthier people from getting the credits. Buyers cannot have an adjusted gross annual income above $150,000 if single, $300,000 if filing jointly and $225,000 if head of a household.
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Eligible electric and plug-in vehicle buyers will get US tax credits immediately in 2024Starting next year, people who want to buy a new or used electric or plug-in hybrid vehicle will be able to get U.S. income tax credits at the time of purchase. The Treasury Department says the near-instant credits of up to $7,500 for an eligible new vehicle and $4,000 for a qualifying used vehicle should lower purchasing costs for consumers. This year eligible buyers can receive the credits, but they have to wait until they file their 2023 federal income tax returns to get the money. Under the Inflation Reduction Act buyers can transfer the credits to dealers, which can apply them at the point of sale starting Jan. 1. The vehicles have to qualify under guidelines spelled out in the law, and buyers’ incomes have to fall below limits.
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