Skip to main content

Thousands of people lied to the IRS to get EV tax credits on gasoline cars

Chevrolet

Car buyers may have claimed more than $70 million in electric car tax credits using ineligible vehicles, Bloomberg reports, citing a report from a United States Treasury Department watchdog. The program awards a tax credit of up to $7,500 for the purchase of new electric cars and lower amounts for plug-in hybrids.

Recommended Videos

The questionable tax-credit claims were found in 16,510 tax returns from a five-year period through 2018, according to an audit from the Treasury Inspector General for Tax Administration (TIGTA). Returns from almost 240,000 taxpayers were reviewed as part of the audit, encompassing $1.4 billion in credits, according to Bloomberg. Exactly how taxpayers claimed credits for ineligible vehicles was redacted from the version of the audit obtained by Bloomberg, but the audit found that the Internal Revenue Service (IRS) isn’t equipped to identify false claims.

“Although the IRS has taken steps to address some of TIGTA’s previous recommendations to improve the identification and prevention and erroneous credit claims, many of the deficiencies previously identified still exist,” according to the audit.

Auditors made four recommendations to the IRS, which agreed with the findings, according to Bloomberg. The agency will also reportedly undertake a program to recover erroneously issued tax credits.

The credit program was created to jump-start sales of electric cars and plug-in hybrids. As the full credit can virtually erase the price premium electric cars often have over gasoline models, it has become a powerful tool for increasing sales. Some states and local municipalities offer their own incentives alongside the federal tax credit.

The most a car buyer can claim is $7,500, for an all-electric car. Plug-in hybrids qualify for lesser amounts, based on the size of their battery packs. A tax filer’s personal financial situation may also affect the amount of the credit. The amount is also keyed to the number of qualifying cars a manufacturer has sold. Once an automaker reaches 200,000 sales, the credit begins to phase out. Beginning with the second calendar quarter after an automaker hits the 200,000-unit mark, the credit is halved until it disappears entirely.

Tesla was the first automaker to trigger a phase-out of the tax credit, and its electric cars now qualify for a credit of just $1,875. General Motors hit the limit shortly after Tesla, so as of October 1, a new Chevrolet Bolt EV qualifies for the same $1,875 credit as the Tesla vehicles. Tesla’s tax credit will disappear at the end of 2019, while GM has until the end of March 2020.

Please enable Javascript to view this content

Stephen Edelstein
Stephen is a freelance automotive journalist covering all things cars. He likes anything with four wheels, from classic cars…
You can now lease a Hyundai EV on Amazon—and snag that $7,500 tax credit
amazon autos hyundai evs lease ioniq 6 n line seoul mobility show 2025 mk08

Amazon has changed how we shop for just about everything—from books to furniture to groceries. Now, it’s transforming the way we lease cars. Through Amazon Autos, you can now lease a brand-new Hyundai entirely online—and even better, you’ll qualify for the full $7,500 federal tax credit if you choose an electric model like the Ioniq 5, Ioniq 6, or Kona EV.
Here’s why that matters: As of January 2025, Hyundai’s EVs no longer qualify for the tax credit if you buy them outright, due to strict federal rules about battery sourcing and final assembly. But when you lease, the vehicle is technically owned by the leasing company (Hyundai Capital), which allows it to be classified as a “commercial vehicle” under U.S. tax law—making it eligible for the credit. That savings is typically passed on to you in the form of lower lease payments.
With Amazon’s new setup, you can browse Hyundai’s EV inventory, secure financing, trade in your current vehicle, and schedule a pickup—all without leaving the Amazon ecosystem.
It’s available in 68 markets across the U.S., and pricing is fully transparent—no hidden fees or haggling. While Hyundai is so far the only automaker fully participating, more are expected to join over time.
Pioneered by the likes of Tesla, purchasing or leasing vehicles online has been a growing trend since the Covid pandemic.
A 2024 study by iVendi found that 74% of car buyers expect to use some form of online process for their next purchase. In fact, 75% said online buying met or exceeded expectations, with convenience and access to information cited as top reasons. The 2024 EY Mobility Consumer Index echoed this trend, reporting that 25% of consumers now plan to buy their next vehicle online—up from 18% in 2021. Even among those who still prefer to finalize the purchase at a dealership, 87% use online tools for research beforehand.
Meanwhile, Deloitte’s 2025 Global Automotive Consumer Study reveals that while 86% of U.S. consumers still want to test-drive a vehicle in person, digital tools are now a critical part of the buying journey.
Bottom line? Amazon is making it easier than ever to lease an EV and claim that tax credit—without the dealership hassle. If you're ready to plug in, it might be time to add to cart.

Read more
Gemini AI coming to cars as Android Automotive update suggests it’s due soon
The 6.8-inch Pioneer digital media receiver installed in a vehicle's dashboard.

Google appears to be getting ready to sends its Gemini AI into cars through an Android Automotive update.

This would make sense as Android Automotive already uses Google's Assistant to help with those much-needed in-car hands-free requests.

Read more
Watch from the passenger seat as the new Porsche 911 GT3 sets a record at the Nürburgring
911 GT3 with Weissach Package (Manual Transmission), Nürburgring Nordschleife 2025, Porsche AG

If you've ever wanted to race at top speeds around one of the most iconic racetracks in the world, then now is your chance. A new Porsche 911 GT3 just set a record for the fastest time around the Nürburgring in a road car with a manual transmission, knocking almost 10 seconds off the previous best time. And Porsche has released a video of the run filmed from the cockpit, so you can experience the thrills for yourself.

The record was set by legendary driver and Porsche brand ambassador Jörg Bergmeister at the wheel of a 911 GT3 with the Weissach package, setting a time of 6:56.294. That's 9.5 seconds ahead of the previous record set by the Dodge Viper ACR in 2017 -- though there's some math involved in these time calculations as the track was reconfigured in 2019.

Read more