((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(New throughout the year, with details, context, and comments from Treasury Secretary Janet Yellen) By David Shepardson
The U.S. government has paid out $2 billion in electric vehicle (EV) tax credits since Jan. 1, covering more than 300,000 vehicles, the Treasury said Tuesday.
Since new rules took effect this year allowing consumers to benefit from EV tax credits worth up to $7,500 at the point of sale, more than 250,000 tax credits have been awarded for new EVs and around 50,000 for used models benefiting from discounts of up to $4,000.
In almost all cases, the credit is transferred to a car dealership at the time of purchase, resulting in a significant discount.
The Inflation Reduction Act of 2022 created the point-of-sale rebate and used EV tax credit, lifted the 200,000 vehicle per manufacturer caps for the credits, imposed restrictions on income and vehicle prices and extended credits to leased vehicles.
He also imposed new restrictions intended to wean the U.S. EV and battery supply chain from China, including requiring all EVs to be assembled in North America to qualify for tax credits.
Treasury on Tuesday released a new analysis from its Office of Economic Policy that estimates that an electric vehicle owner will save between $18,000 and $24,000 more than someone who purchased a comparable gasoline-powered vehicle. The analysis presents the estimated annual savings assuming a vehicle lifespan of 15 years.
“These savings provide new choices for consumers and help automakers and dealers attract new customers and grow their businesses,” said Treasury Secretary Janet Yellen, who added that “consumers will save an average of $21,000 dollars on fuel and maintenance over the life of their vehicle and will be protected from volatile gas prices.”
Consumers must certify that they meet the income limits to qualify for the tax credit at the time of purchase or must repay the government when they file their tax return. For new vehicles, the adjusted gross income limit is $300,000 for married couples and $150,000 for individuals.
