Electric vehicle enthusiasts may need to act fast as President Donald Trump plans to eliminate the $7,500 federal tax credit for electric car purchases. This move could have a significant impact on those considering buying a new electric or plug-in hybrid vehicle. According to Chris Harto, a senior policy analyst at Consumer Reports, now may be the best time to make a purchase before the tax credit is eliminated.
While Trump’s transition team aims to remove the subsidy to fund tax cuts, the EV tax credit will not disappear overnight. Trump would need Congress to pass a wider tax bill to delete the credit, which could take months of negotiations. However, if you want to stay ahead of any policy changes, it’s advisable to consider making a purchase sooner rather than later.
The current EV tax credit allows buyers to receive up to $7,500 off the purchase price of qualifying electric vehicles. The credit can now be applied as an upfront discount at the dealership, making it easier for consumers to benefit from the incentive. With 22 EV and plug-in hybrid models currently eligible for the credit, including the Chevrolet Equinox EV, now is a great time to take advantage of these savings.
While there is uncertainty surrounding the future of EV incentives, it is unlikely that Congress would retroactively change the tax code to revoke benefits that have already been issued. The auto industry, particularly non-Tesla players, supports the credit and will likely fight to preserve it. Additionally, the IRA, like the Affordable Care Act, has become a crucial part of American life and may be challenging to eliminate.
Despite the potential demise of the EV tax credit, now is an excellent time to buy an electric vehicle due to other factors. New restrictions on Chinese content in eligible EVs may come into effect soon, and automakers are offering great deals to sell off excess inventory. As demand for EVs continues to rise, prices are expected to increase in the coming months.
In conclusion, while the future of the EV tax credit remains uncertain, it is recommended to move forward with a purchase or lease quickly to take advantage of current incentives. The potential elimination of the tax credit, along with other market factors, makes now an ideal time to invest in an electric vehicle.