Car buyers could lose up to $7,500 in federal incentives after September 30—but the rules are murky, and the government hasn’t said exactly what happens next.
If you’re thinking about buying an electric vehicle, brace yourself: the federal tax credits that offer up to $7,500 off new EVs and $4,000 off used ones could change as soon as September 30.
But here’s the real issue: Nobody knows for sure what happens next.
Carmakers, consumers, and even some dealerships have been operating under the belief that a signed contract before September 30 locks in the credit. But now, some automakers are quietly admitting that the IRS has not finalized that rule.
“It is our understanding that a signed contract is required to qualify for the federal tax credit, and that the contract date serves as the determining factor,” a spokesperson for Honda told Gizmodo, while noting the government is still working it out.
That caveat is huge. With no clear guidance from the Treasury Department or IRS, consumers are left in the dark just as they’re being asked to make expensive decisions.
