In the United States, many buyers of electric vehicles had missed the tax credit due to the IRS requirements, but fortunately, there is now a corrective
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by Brad Anderson
March 28, 2025 at 09:10
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- The concessionaires had previously only 3 days to report an EV sale to the IRS for the tax credit.
- Now they can now submit a sales report for any vehicle sold in 2024 to claim credits.
- The National Auto Dealers Association has put pressure on IRS to resolve problems with EV credit.
The federal tax credit of $ 7,500 gave many Americans a financial boost to become electric, but the program was not exactly smooth. Although the credit can now be applied directly to the point of sale, some dealers have dragged their feet on the process, leaving the baked and dry buyers without the discount that was promised to them. But, good news: there is a solution in preparation.
Read: the paperwork errors of dealers cost buyers their EV tax credits from IRS
It turns out that if the discount is available during the purchase, dealers must be entered in the program and use a portal to submit their EV sales report within three days of the transaction for the credit to be ensured. Miss this deadline and the discount? POOF. Disappeared.
The IRS intervenes with a life buoy
Fortunately, the IRS goes up on the plate. According to the National Automobile Dealers Association (NADA), the agency mainly strikes the reset button on the 3 -day report rule. From now on, dealers can submit reports for any eligible clean vehicle credit transaction from 2024, even if this happened earlier in the year.
According to Nada, the IRS updated the portal earlier this week, which makes it fully operational for dealerships. The good news here is not only for car buyers, it is also a victory for dealerships. Certain dealers offered the tax credit in advance to customers at the point of sale, to realize later that they had not yet obtained the real discount.
Nada says that he “advocated aggressively for the IRS to remedy these questions” and even went so far as to send a formal letter both to the US Treasury department and to the IRS, urging them to quickly solve the problem and implement a solution in a timely time.
With the Trump administration, which should impose 25% prices on all cars made abroad from April 2, the tax credit may be more precious now than at any other time for consumers. These new prices should increase the cost of new and used cars, possibly adding thousands to the price. Thus, for many buyers, this $ 7,500 credit is about to become much more precious.
