IRS Backlog Cripples U.S. EV Sales as Tax Credit Chaos Engulfs Dealers

Car dealerships across multiple states report a sharp decline in electric vehicle sales following an IRS processing freeze on federal tax credits. The agency halted approvals and payouts in mid-September, creating a logjam of unpaid rebates worth up to $7,500 per vehicle. Dealers now face mounting financial pressure as they continue honoring the credits without government reimbursement.

The timing couldn't be worse. Consumers rushed to claim incentives before the program's abrupt termination on September 30—a decision stemming from recent legislation signed by former President Trump. Green Wave Electric Vehicles in New Hampshire alone carries $100,000 in outstanding claims, with most applications filed after September 15 remaining in limbo.

Through the Energy Credits Online portal, dealers front the rebate money during sales, betting on IRS repayment. That gamble has turned precarious. Only three of Jesse Lore's twelve submissions gained approval, with zero payments processed. Screenshots reviewed by CNBC confirm the gridlock. "We're continuing to pay the tax credit, though with a lot of anxiety," Lore admitted. "We're in the dark."