2024 EV Tax Credit Changes - The Good, The Bad, And “Huh?”

2024 has brought some big changes to America’s EV tax credit scheme. The tax credit can now happen at the point of sale which will cut the amount you may have to finance, and more people will be eligible for the full credit since you no longer have to have a minimum tax liability to get the deal. The downside? The number of qualifying EVs has shrunk dramatically due to tightening domestic sourcing requirements and the ban on components sourced from China. Although there are teething troubles with the used EV credit, that’s now online and there’s still the gaping loophole for EV leases regardless of where they are made. All that and more in this video!
IRS Guidance: www.irs.gov/pub/taxpros/fs-20...
Join this channel to get access to perks! / @aautobuyersguide
Buy Merch! aoamerch.com
The Pod: / autobuyersguidepodcast
EV Buyers Guide: / evbuyersguide
The Mountain Garden: / themountaingarden
Follow us on Facebook: theautobuyersguide/

[@AAutoBuyersGuide]

If you are trying to do a private party sale of an EV, you can use a service like KeySavvy (not an endorsement, I have no idea how well it works) because they are a car dealer. They charge a fee for the transaction but all the paperwork is done by a qualified dealer so the used tax credit can apply.

[@rightlanehog3151]

Alex, We were overdue for another episode of Alex on Accounting! In the next installment we await, 'The Chicken Tax Explained' . 😁😁

[@Herlongian]

The tax credit has become a big joke. Even if you find one that qualifies, the dealers have already calculated how to steal the credit. It’s $7500 for the dealers. The whole thing needs to be tossed and reworked.

[@ZReviews]

Jesus this is madness

[@timdsd]

This year's change to turn the tax credit into what is effectively a point of sale rebate is a godsend for retirees like myself, who can afford to buy a new EV but have a tax liability much less than $7,500.

[@kj5905]

This is awesome news for military families who don’t make much and almost never have a tax liability. If I was a dealer, I would get my IRS POS login and push this to military families.

[@DM72513]

12:40

[@bahamatodd]

GM already announced that they already resourced the necessary materials and all new Ultium production from now gets the credit. The small amount of production that didn't qualify gets a $7500 rebate from GM.

[@GoldenK9Campers]

Great info.. Thanks Alex !! Always wondered how the Lease loophole worked.

[@Jetter638]

Fantastic and informative video. Keep up the great work...much appreciated. Maybe a mid-year update would be appropriate as a number of cars have either come to market since this video was released or will soon be available (e.g., Chevy Blazer, Chevy Equinox, Honda Prologue, etc.) and their was still a question mark surrounding whether they would qualify.

[@Betamax84]

Thank you for this!

[@Shinjestari]

Thank you for the summary. Really helpful.

[@Evan_Land]

This is extremely helpful for those looking. Knew about some of this and just bought an Bolt EUV after watching all your Bolt reviews (great car, especially since I only charge level 1 at home!). I ended up purchasing a new Bolt EUV for $15K in CO with the additional Colorado Vehicle Exchange Program. In total, my up-front discount was $21,350. (And UNFORTUNATELY, the dealer did mark it up nearly $6,000).

[@gregkramer5588]

Well done Alex!

[@arteitle]

Could you do a video explaining the changes to the EV charging installation credit? My understanding is that the Inflation Reduction Act added new limitations on what census tracts can get the credit, even for home installation.

[@carloaltamirano4112]

I dont understand the whole tax credit, and its confusing me even more. If I normally don't owe the IRS and get a tax refund, say 2k, since they paid 7500 towards the car up front, will they keep my 2k? And even worse, will they keep my 2k and tell me I owe them $5500?

[@dreamcoyote]

I get the complex intent of the various limitations, but in terms of implementation (assuming it's not illegal in some way) they probably should have split the price/component part into a certification stamp. Like, if your income is below a threshold, then you can get $7,500 off of USEV Gold stickered cars. Cars that could only get half would be USEV Silver stickered (certified) cars. That would make it a two step process (income check + car certification) for buyers and a checklist for dealers (which cars can get certified).

[@npaladin2000]

Thank you for all the detail, it's very importan, but with so much of it not indexed to the (currently high) inflaction it really seems like it's not going to be much of a gain for a lot of people.

[@boki23m]

According to the form, if the vehicle is used and $4000 credit was received the business/personal use doesn't apply? Can you get a used vehicle and occasionally use it for rideshare driving? Mixed use, maybe 50/50 business/personal miles and deduct mileage (not actual cost)?

[@CoordinatedCarry]

I’ve been told at multiple dealers that the IRS portal isn’t open yet for POS rebates.