Larisa Manescu, larisa.manescu@sierraclub.org
WASHINGTON, DC - Today, the Biden-Harris Administration released guidance on how consumers can transfer their Inflation Reduction Act electric vehicle (EV) credits to dealerships starting on January 1, 2024.
The Inflation Reduction Act provides a tax credit of up to $7,500 for electric vehicles that meet certain production requirements. The climate law also offers a $4,000 credit for used EVs, which is important as the majority of consumers purchase used cars. Under the guidance announced today, dealers can provide the credit as a rebate at the time of purchase. Buyers can receive cash or apply the credit toward the cost of the car or the down payment.
This announcement comes right after the momentum of the nationwide National Drive Electric Week, with local organizers hosting over 250 events. Sierra Club is a national sponsor of NDEW alongside Drive Electric USA, the Electric Auto Association, EVHybridNoire, and Plug In America. In its 13th year, NDEW plays a major role in educating people about electric vehicle rebates, charging, and any other questions that people may have about EVs, in busting misconceptions (fueled by fossil fuel interests attempting to hinder EV adoption), and in getting people charged up about EVs to share the enthusiasm.
In response to the guidance, Katherine García, Director of Sierra Club’s Clean Transportation for All campaign, released the following statement:
“This is the power of the Biden-Harris Administration’s Inflation Reduction Act at work. Providing federal incentives for cleaner vehicles is crucial for climate, clean air, and fuel savings. These incentives will encourage more drivers to switch to EVs and help dealers to expand their sales.
“Research shows that consumers overwhelmingly prefer an immediate rebate at point of sale. Having this instant rebate is a huge step towards making these cars – new and used – more accessible.
“Our gas-powered cars are responsible for the majority of climate pollution and contribute to health-threatening air pollution across the nation. This guidance is a major win-win for drivers, dealers, and our planet.”
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.