DETROIT (NEWSnet/AP) — Starting in 2024, people who want to buy a new or used electric or plug-in hybrid vehicle will be able to get U.S. government income tax credits at time of purchase.

Eligible buyers, including those who purchased an EV or hybrid in 2023, have had to wait until they filed a federal income tax return to receive the benefit.

The Treasury Department says the near-instant credit of $7,500 for an eligible new vehicle and $4,000 for a qualifying used vehicle should lower purchase cost for consumers and help car dealers by boosting EV sales.

Under the Inflation Reducation Act, which included the credits, buyers may transfer the credits to dealers, which can apply them at the point of sale, beginning Jan. 1.

People can get the full credit from dealers regardless of how much they owe in federal tax, the government said.

The vehicles have to qualify under guidelines established in the law, and buyers’ incomes have to be below limits.

Dealers have to hold state or local licenses to offer the credits, and they must register on an Internal Revenue Service website. After dealers submit sales paperwork, they can expect to get payments from the government within about 72 hours, officials said.

To be eligible, electric vehicles or plug-ins have to be manufactured in North America. SUVs, vans and trucks must have a sticker price of $80,000 or less, with cars $55,000 or below. Used electric vehicles cannot have a price of more than $25,000.

A buyer’s adjusted gross income maximum is $150,000 if single, $300,000 if filing jointly and $225,000 if head of a household.

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