Treasury Proposes Letting Car Dealers Offer EV Tax Credit as Discount to Boost Affordability

Treasury Department proposes new rules to allow car dealers to offer full EV tax credit as discount at point of sale starting in 2024.

Change would make credit accessible to more buyers, especially lower earners, regardless of tax liability.

Buyers would transfer tax credit to dealer, who discounts purchase price; dealer gets reimbursed by IRS.

Caveats Dealers must register, buyers must file taxes and self-attest income eligibility.

Proposal aims to boost EV affordability and equity but is still subject to public comment period before finalization.