Consumers in the market for an electric vehicle with the help of a tax break are running out of time.
The federal tax credit of up to $7,500 for new EVs expires Oct. 1. There is a little wiggle room built into its sunset: If an EV isn’t ready for delivery by Sept. 30, the consumer can still claim the credit if a contract is signed and a payment made by that date, according to the IRS.
The credits, which the Trump administration axed in the recently passed federal spending bill, have juiced EV sales they debuted under the Inflation Reduction Act of 2022. EV sales spiked more this year once the new administration made clear the credits were on the chopping block.
The breaks apply to both EV purchases and leases. Auto market watchers have forecast a decline in EV sales after the credits’ expiration, slowing U.S. adoption momentum.
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