Back in 2022, the Inflation Reduction Act provided a $7,500 credit for the purchase of a new qualifying electric vehicle. There was also, up to a $4,000 credit on a used EV.
But the One Big Beautiful Bill Act ended those credits yesterday.
The Auto Dealerships we work for have been grousing about the IRS being slow to compensate them for these credits over the past month. This was predictable, given the most recent workforce reductions at the Service.
In response, dealers have been floating the credit anyway to keep their sales moving forward. Yesterday was supposedly a big sales day for these vehicles with buyers claiming the credit before it ended.
Please note that the majority of the other clean energy credits are ending on New Years of this year. If you’re planning on receiving one for a home project, get to it.
If you wait till January, you’re might be SOL.
Let me leave you with this…
If you’d still like to purchase an Electric Vehicle and receive the credit, fear not. A solution has been put into place.
The Ford and GM Financing Divisions, purchased the majority of the EV’s that were still at the dealers before yesterday and claimed the credits. As such, if you still want to purchase one, as long as you finance it through their financing divisions, the credit should be afforded to you.
But I’d be cautious if that’s your plan.
Auto financing is famous for giving with one hand and taking with the other. Most dealers would go out of business, if they had to live off of the markup they have on cars alone without also profiting from the financing.
Vehicle loan paperwork is confusing at best, even for people like me, if you don’t handle it every day. Be careful what you sign.
You don’t have to drive out of the dealership with that car. If you’re at all leery about the deal or the financing, go home and do some homework.
There’s always going to be other financing and similar vehicles available elsewhere. Committing to monthly payments for the next three to five years of your life shouldn’t be an impulsive decision.
When you have any questions, you know my number…
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
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