Summary
The federal tax credit for buying electric vehicles, worth up to $7,500, is set to end on September 30. However, if buyers sign a contract to purchase an EV before the deadline, they can still get the credit even if the car is delivered later. A payment, such as a small down payment or trade-in, must also be made before the deadline.
Key Facts
- The tax credit for electric vehicles is up to $7,500 and expires on September 30.
- Buyers need to sign a binding contract before this deadline to qualify for the credit.
- A payment, like a down payment or vehicle trade-in, must be made before the deadline.
- The credit is granted only when the buyer receives the car.
- The IRS's recent update allows using the contract date, not the delivery date, for eligibility.
- The credit applies to vehicles meeting certain conditions like price cap and manufacturing location.
- Buyers must earn less than $150,000 ($300,000 for married couples) to use the credit.
- A separate $4,000 tax credit is available for used electric vehicles.
