Solution Found for Missed EV Tax Credits

After a problematic start this spring, car buyers who missed out on expected electric vehicle (EV) tax credits can now breathe easier.

The Internal Revenue Service (IRS) introduced a fix for those who couldn't claim their benefits due to dealerships reporting sales inaccurately through a new online system.

Read more: Why Some Electric Vehicle Buyers Didn’t Get Their Tax Credits This Year

Previously, dealers had to report the sale of electric cars within three days to qualify for the tax credit. Unfortunately, some dealers missed this deadline, making the credits inaccessible.

Responding to pressure from National Automobile Dealers Association (NADA) and members of Congress, the IRS is now allowing dealers to report 2024 sales late. This decision temporarily waives the three-day requirement and enables dealers to assist customers in securing their credits.

This opportunity is open as of March 25, and dealers are encouraged to act quickly, though it’s uncertain how long the late-reporting option will be available.

For car buyers, this means revisiting the dealership where the car was purchased. Only the dealers have the capability to log into the IRS system and validate the sales needed to secure the tax credit.

NADA has actively pushed for this solution, recognizing both dealers and customers were negatively affected, and has welcomed this development.

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