If you are considering purchasing an electric vehicle (EV) to take advantage of government tax credits, be prepared for additional research. The future of a significant tax break is uncertain and complex under the Trump administration. The Inflation Reduction Act of 2022 allows many consumers to receive up to a $7,500 tax credit for certain EV models. However, President Donald Trump’s “Unleashing American Energy” executive order suggests reconsidering subsidies favoring EVs over other technologies. While only Congress can revoke these credits, the president’s orders have created confusion. Elaine Buckberg, a senior fellow at Harvard University’s Salata Institute for Climate and Sustainability, noted the unclear impact on dealers and the potential rollback of credits previously available. Energy research group Wood Mackenzie predicts notable effects on the EV market, though the extent remains undetermined. Currently, two tax credits exist: 30D for buyers and 40W for lessees. Leasing has allowed consumers to bypass paperwork, with dealers incorporating savings into costs. As a result, 46% of EV drivers lease compared to 24% of new car lessees overall. Leasing appears unaffected for now, as automakers’ finance companies manage risks. However, purchasing experiences vary, with some dealers no longer offering point-of-purchase rebates. Potential buyers are advised to consult accountants due to possible legislative changes before claiming rebates. Whether or not to buy an EV depends on various factors, including driving habits and personal preferences. Despite reduced federal support, EVs remain viable with several affordable models available. Monthly savings on fuel and insurance often offset higher payments. Emotional factors also influence vehicle choice, according to industry experts. Globally, EV sales rose 25% in 2024, indicating continued market growth. — news from USA TODAY
