The $7,500 tax credit for electric cars will see big changes in 2024. What to know

A $7,500 tax credit for electric vehicles will see substantial changes in 2024. It will be easier to get because it will be available as an instant rebate at dealerships, but fewer models are likely to qualify. (Justin Sullivan/Getty Images)

If you are considering buying an electric car in 2024, there's good news — and bad news: A hefty federal tax credit for electric vehicles is going to get easier to access next year, but fewer vehicles will likely qualify for the full $7,500 credit.

The tax credits are a key part of the Biden administration's plan to speed up the shift to electric vehicles and slash carbon emissions from transportation.