Biden Administration Unveils Guidance That Will Allow Thousands of Dollars in Instant Rebates for Electric Vehicles

“Today’s Biden administration action means that, beginning this January, millions of people will have immediate access to thousands of dollars in rebates when buying a new or used electric vehicle. Today’s new policy is a trifecta for people all across our nation – more choices when purchasing a new or used electric vehicle, cleaner air, and thousands of dollars in rebates at the time of purchase.

“Zero-emitting cars and trucks have already sparked a renaissance in U.S. manufacturing, with billions of dollars invested in new facilities that are creating tens of thousands of new jobs. Some models available today can save their owners more than $18,000 over the life of the vehicle in avoided fuel and maintenance costs, while slashing the climate and health-harming pollution that puts us all at risk.

“Thanks to the Inflation Reduction Act there are already substantial tax rebates for buying an electric car or passenger truck – as much as $7,500 for a new one or $4,000 for a used one. These credits are available to low and middle-income purchasers and are designed to help incentivize production of made-in-America clean vehicles. The Treasury Department today unveiled new guidance that will allow people to get that rebate up front, as money off the car at the moment of sale, instead of waiting until they file their taxes to get the rebate. Studies show buyers, especially lower-income buyers, far prefer a point-of-sale rebate. These innovative cost savings will be available beginning in January 2024.”             

- Peter Zalzal, Associate Vice President of Clean Air Strategies for Environmental Defense Fund