Prospective car buyers interested in purchasing an electric vehicle (EV) should consider acting quickly to take advantage of the Biden-era EV tax credit worth up to $7,500, as there is a risk that the credit may be eliminated in 2025 by President-elect Donald Trump and Republicans in Congress. The Inflation Reduction Act, signed by President Biden in 2022, offers federal EV tax breaks through 2032 for new and used EVs, making it easier for consumers to access the savings upfront at the time of purchase.
President Trump and Republicans have expressed intentions to eliminate the EV credits to fund tax cuts, raising concerns among consumers interested in purchasing EVs. This uncertainty has prompted some individuals, like Laura from Charlotte, North Carolina, to rush to buy an EV before the credit potentially disappears.
Experts recommend taking advantage of the tax credit while it is still available and encourage consumers to consider signing a lease agreement to lock in savings over a multiyear term, even if that term overlaps with the Trump administration. However, consumers should carefully review lease agreements to ensure they will not face increased monthly payments if the tax credit is denied.
There is uncertainty about the future of the EV tax credit, with experts predicting that Republicans may pass a tax package phasing out the credit in 2026 or 2027 instead of retroactively impacting purchases made in 2025. Overall, consumers interested in purchasing an EV should act quickly to secure the tax credit before potential changes take effect.
Photo credit
www.nbcnews.com