10:20 AM EDT, 06/12/2024 (MT Newswires) -- The US Treasury and IRS said Wednesday that buyers of electric vehicles have saved over $1 billion in upfront costs on their purchase of more than 150,000 vehicles since the start of the year.

The Inflation Reduction Act introduced a new mechanism on Jan. 1 to transfer the credit of up to $7,500 for new EVs and the credit of up to $4,000 for used EVs to dealers, the agencies said.

The move allowed EV buyers to get the upfront discount at the point of sale rather than when they file their taxes, the agencies said.

"Researchers have found that consumers overwhelmingly prefer an immediate rebate at point of sale," the agencies said.

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