Phoenix – Auto dealers are anticipating a bustling month for electric vehicle (EV) sales as the federal tax credit deadline approaches, but there’s some uncertainty regarding the September 30th cut-off.

The IRS has recently updated its FAQs, stating that the credit isn’t available for vehicles acquired after September 30th. The crucial factor now is the date of the contract and written payment, meaning car shoppers don’t need to own a vehicle for the credit to apply. So, if you’re planning to use the credit, it’s probably wiser to shop sooner rather than later.

“I think we could set a record for EV sales in the U.S. this September. By the end of the month, we might find our inventory quite low,” one dealer mentioned, feeling optimistic about the rush.

The urgency to secure a tax credit amounts to $7,500 for new EVs and $4,000 for used ones, which could lead to a dip in sales afterward. “We’re all curious what October will hold,” Hovik expressed. “Manufacturers will likely adjust their incentives, as it doesn’t help anyone if cars just sit unsold.”

Max Bregman, the founder of BreatheEV, is developing a charger reservation system in anticipation of short-term shifts in the EV market as tax credits vanish. “This change certainly impacts ownership in the near term, but as technology advances, we’ll see a rise in investment from major manufacturers in EV infrastructure and vehicles,” he said. “However, the path forward seems a bit unpredictable.”

Despite a potential slowdown in EV sales short term, Bregman notes that the demand for charging stations and technology remains strong. “EVs aren’t going away,” he remarked. “Whether through federal support or utility funding, we want to offer the most affordable installation of chargers while there are still rebate funds available.”

If you’re utilizing an EV tax credit, it can be transferred directly to an authorized dealer. They will apply the credit and provide a pre-order discount on the vehicle’s sticker price.