Starting Jan. 1, buyers of new or used electric and hybrid vehicles will be eligible for tax rebates rather than waiting to file their income taxes. The U.S. Treasury Department says the near-instant tax credit will help lower the purchase price for these vehicles as more American consumers consider switching to electric and hybrid vehicles.

How the EV tax credit works: All eligible EV buyers -- and not just a subset of typically wealthier consumers -- would get an upfront discount of up to $7,500 for new cars and $4,000 for used cars.

If the Treasury proposal is codified, it would expand the pool of consumers — especially lower earners, who generally have smaller tax liabilities — eligible for the full value of the EV tax credit.

“It’s great news, especially from an equity standpoint and for people who may not have as much disposable income,” said Ingrid Malmgren, policy director at nonprofit Plug In America. “It really will make [an EV purchase] more affordable for them.”