In the ever-changing realm of automotive sales, a seismic shift is underway as more than 7,000 car dealers in the United States are gearing up to revolutionize the EV market by embracing a groundbreaking initiative –providing 'Point of Sale' tax credits to potential buyers.

The availability of direct 'Point of Sale' tax credits to potential buyers is poised to make EVs not only more accessible but also more affordable right from the showroom. The current year witnessed a notable resistance to EVs, but a wind of change seems to be blowing as dealers across the U.S. have enrolled with the IRS to extend tax credits directly to customers during the process of purchasing. This means that people opting for an EV can get a substantial discount of up to $7,500 at the very moment they buy the vehicle, eliminating the need to wait for the traditional tax season rebate.

As per the National Automobile Dealers Association (NADA), the number of dealers participating in this initiative will likely surpass 7,000, given the pending applications that are in line for IRS approval. With more than 17,000 franchised dealerships in the U.S., it marks a significant portion of the industry aligning with the ongoing shift towards sustainable transportation.

A NADA spokesperson told reporters, “There are many more dealerships that are covered by those 7,000 registrations, and this does not include the many registration applications submitted but the IRS has not yet approved.”

The U.S. federal government’s Inflation Reduction Act (IRA), which is all set to take effect from January 1, 2024, will adds another layer to this transformative journey towards sustainable transportation. EV buyers will no longer have to endure the waiting period post-tax filing to claim federal credits. Instead, they will be able to drive home their vehicles with a reduced upfront cost. In other words, the new policy change will turn an often-delayed incentive into an instant reality.

The change in EV tax credit policy could serve as a catalyst for change. Dealers now have a compelling reason to champion EVs. In fact, it is a golden opportunity for dealers to end the skepticism surrounding EVs, align with the EPA’s emissions targets, and contribute meaningfully to a sustainable future. While the practical implications of this change are yet to be seen, the potential for a smoother and more efficient EV buying process is unquestionably appealing.