More than 1,000 more car dealers have signed up for the scheme since the electric vehicle tax credit became available on January 1, the Treasury confirmed Friday morning.
Treasury officials told reporters that more than 8,700 dealers had registered for credit as of Friday, up from the 7,400 announced in late December. Changes to the credit under the Inflation Control Act will allow electric vehicle buyers to claim the credit at the time of purchase from a registered dealer, without having to wait for next year's tax payment.
The 7,400 number itself is up from the 7,000 dealers announced by the Biden administration in early December.
The credit change requires dealers to submit a “point-of-sale report” within a certain period of time after selling an electric vehicle in order to claim rebates at the point of sale.
Officials say dealers have filed hundreds of similar reports through IRS ECO, an electronic service the IRS launched on Jan. 1. The IRS will extend the deadline for dealers to submit point-of-sale statements until January 16th. Officials told reporters Friday that they are adapting to the system.
“Later this month, we will revert to the standard reporting deadline of three days from the time of sale for point-of-sale reports,” officials said on a conference call. “These modified procedures are temporary to allow for more processing.” [vehicle identification number] We are working with manufacturers to ensure the accuracy of data submissions and look forward to a smooth process after this initial ramp-up phase. ”
In addition to the point-of-sale rebate, the tax credit of up to $7,500 excludes certain vehicles associated with foreign entities of concern, such as companies partially owned by China, Iran, Russia, and North Korea. The scope was reduced from January 1st. For a car to qualify for half of the $7,500 credit, at least 40% of the critical minerals in its battery must come from the United States or a country with a free trade agreement with the United States. That percentage will increase to 80% in the future and 2027.
The Biden administration has set ambitious goals to expand the adoption of electric vehicles in the United States, while also working to reduce China's influence in the supply chain for electric vehicles and battery components.
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