What to know about buying electric vehicles after the federal tax incentives end
By CALEIGH WELLS
The massive tax and spending cut bill that Congress passed Thursday ends federal tax incentives for electric vehicles.
Buyers have until Sept. 30 to qualify for the federal tax credits on EVs before they are terminated. But experts say there are still strong financial reasons to consider buying the vehicles even without those incentives.
Before the bill passed, new electric vehicles came with a $7,500 federal tax credit, and used EVs included up to $4,000. Those incentives were originally designed to help make the vehicles more affordable. According to the latest data from Kelley Blue Book, the average purchase price of a new EV is roughly $9,000 higher in the United States than the average new gas-powered car. Used EVs on average cost $2,000 more than comparable gas cars.
Those credits, paired with other incentives in many states, helped bridge that price gap. Without them, Senior Policy Director Ingrid Malmgren of the nonprofit advocacy group Plug In America said they will become unaffordable to many lower- and middle-income Americans.