Treasury says 7,400 dealers have signed up for electric vehicle tax credit

The Treasury Department estimates more than 7,000 auto dealers have registered to provide the new point-of-sale tax credit for purchase of an electric vehicle beginning Jan. 1.

In updated numbers, the department put the number of registered dealers at 7,400 nationwide, up from an estimate of 7,000 last week. The Treasury Department said Rivian and Stellantis have submitted eligible vehicle identification numbers (VINs) as of Friday. 

While the department expects more automakers to submit VINs in the weeks ahead, “VINs not yet provided by manufacturers and available in IRS Energy Credits Online are not eligible vehicles as of January 1, 2024."

It said "eligibility cannot be determined retroactively—that is, sales of ineligible vehicles cannot become sales of eligible vehicles if VINs for such vehicles are submitted in the future.”

In the case of vehicles that enter service on Jan. 1 or later, Treasury recommended that buyers planning to claim or transfer a new or used tax credit make sure they obtain a copy of the time-of-sale report.

“The Treasury Department and IRS have been in close contact with automakers as manufacturers determine which vehicles will be eligible in early 2024 for the 30D consumer clean vehicle credit. Automakers are adjusting their supply chains to ensure buyers continue to be eligible for the new clean vehicle credit, partnering with allies and bringing jobs and investment back to the United States,” a department spokesperson said. “Annual electric vehicle sales in the U.S. surpassed 1 million in 2023 for the first time — three years earlier than expected — and we expect progress to continue in 2024.” 

Under updates through the Inflation Reduction Act (IRA), the credit in 2024 will be accessible upon purchase for the first time, while previously beneficiaries would need to wait until filing their taxes the next year.

However, new rules on foreign entities of concern will also narrow the models that are eligible by placing new restrictions on components manufactured by companies controlled by the governments of China, North Korea, Russia or Iran.