Electric vehicle tax credits coming in 2024

U.S. government income tax credits will start at the time of purchase next year for those who buy a new or used electric or plug-in hybrid vehicle.


National News

October 6, 2023 - 2:33 PM

An electric car and a plug-in hybrid car charge at a public charging station on Oct. 12, 2019 in Berlin, Germany. Minnesota has become the latest state to adopt California's stricter standards for tailpipe emissions and a mandate for automakers to get more zero-emission vehicles onto sales lot. (Sean Gallup/Getty Images/TNS)

DETROIT (AP) — Starting next year, people who want to buy a new or used electric or plug-in hybrid vehicle will be able to get U.S. government income tax credits at the time of purchase.

Eligible buyers, including those that bought an EV or hybrid this year, have had to wait until they filed their federal income tax returns to actually get the benefits.

The Treasury Department says the near-instant credits of $7,500 for an eligible new vehicle and $4,000 for a qualifying used vehicle should lower purchasing costs for consumers and help car dealers by boosting EV sales.