IRS Expands Electric Vehicle Tax Credit Access for Low- and Middle-Income Buyers

The IRS released new guidance allowing low- and middle-income EV buyers to get the full $7,500 tax credit starting in 2024.

The new "transferability" provision lets buyers transfer the credit to dealers to lower the purchase price.

Dealers can then be reimbursed by the government so buyers get the savings upfront.

Buyers can now get the full credit even if they don't have enough tax liability to claim it.

The changes make the tax credit more accessible to lower-income buyers, though income caps still apply.