With the arrival of Donald Trump in the White House, many expect it’s simply a matter of time before the $7,500 tax credits for buying qualifying electric vehicles are history. However, some Republicans are moving in the opposite direction, calling for a one-time, $1,000 tax on new EVs. Find out why they may not be out of line at Headlight.News.
If the Trump administration moves forward with plans to end federal EV tax credits California Gov. Gavin Newsom plans to activate state rebates to help maintain the state’s role as the biggest market for battery-electric vehicles. But there’s a catch: the governor plans to initiate a market cap that would likely exclude the state’s best-selling EV brand: Tesla.
The New Year brings bad news for potential EV buyers as only a handful of models now qualify for federal tax credits of up to $7,500. That’s because of new requirements covering the sourcing of batteries and raw materials like lithium and cobalt. Among the brands impacted are Tesla, Nissan, General Motors and Ford. And analysts worry this could further slow growth of EV sales.
One of the benefits of buying an EV is the potential to earn state and federal incentives — including up to $7,500 in tax credits from the IRS. On the down side, the Inflation Reduction Act reduced the number of models qualifying for the federal giveback — but new guidelines mean that, if your EV does qualify, you now get your rebate instantly, rather than waiting until you file your annual taxes.