In a significant move to promote the adoption of electric vehicles (EVs), the White House and the Treasury Department recently convened private sector leaders from the pre-owned vehicle sales industry, clean car advocates, and State and federal officials. The gathering celebrated the progress spurred by the Inflation Reduction Act’s 25E used clean vehicle tax credit and encouraged the use of the dealer transferability option, which allows consumers to claim the tax credit at the point of sale.
John Podesta, Senior Advisor to the President for International Climate Policy, along with other senior administration officials from the White House and Treasury, led the event. The initiative has already seen substantial engagement, with over 13,000 dealerships offering the tax credit at the point of sale. Impressively, 90% of EV buyers eligible for the credit are opting to receive their cash immediately, saving consumers over $850 million this year alone. The IRS has streamlined the process, ensuring dealers receive their payments within a week.
The 25E used clean vehicle tax credit offers up to $4,000 off qualified electric vehicles for taxpayers with incomes below certain thresholds—$75,000 for individuals and $150,000 for married couples filing jointly. This initiative aims to make EVs more affordable for the majority of Americans who typically purchase used cars.
Starting January 1, 2024, taxpayers have been able to utilize both new and used clean vehicle tax credits at participating dealerships, further incentivizing the switch to electric vehicles.
During the event, several companies made significant commitments to enhance the use and visibility of the tax credit:
- Carvana pledged to fully integrate the used clean vehicle tax credit into its e-commerce platform by the end of summer 2024, allowing customers to instantly realize savings at checkout.
- CarMax will highlight potentially eligible vehicles for the federal Used Vehicle Tax Credit on its website by January 1, 2025, enabling customers to search for these vehicles specifically.
- Recharged aims to simplify the EV buying process by offering a comprehensive platform integrating buying, financing, and charging by the end of 2025.
- Incentivize plans to forge over 50 new partnerships by December 2025, expanding its EV Rebate Calculator’s reach to help consumers navigate federal, state, and local EV tax credit eligibility.
- Recurrent will publish vehicle eligibility for 25E rebates in its reports by July 2024, assisting shoppers in finding rebate-eligible used inventory.
- ZETA is developing educational materials to raise awareness of the 25E credit and promote EV adoption by January 2025.
- Maritz Automotive Solutions commits to conducting at least 1,000 training sessions across the country by December 2030 to build competencies in EV product knowledge and rebate management.
- American Express Global Business Travel will advise corporations on integrating EVs into their travel programs and fleets in its 2024-25 Ground Monitor publication launching in June 2024.
- Sierra Club will host events throughout 2024 to ensure drivers are aware of eligible tax incentives for new and used EVs.
- Plug In America is collaborating with Google to develop a dealership identifier for clean vehicle dealers participating in advance payments by September 2024.
- Environmental Defense Fund will train 50 companies on fleet electrification by December 2025 using its Net Zero Action Accelerator hub.
- Plug In America and Recurrent Auto will maintain a public directory of participating retailers and enhance PlugStar training content to reach 500 sales staff starting in July 2024.
These commitments reflect a concerted effort to enhance the accessibility and affordability of electric vehicles, promoting a greener future and driving the nation’s progress toward climate goals.
