This Is The Time To Buy An EV — Tax Credits Will Expire Soon And Musk Doesn’t Care – CleanTechnica

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My brother owns a home in Boston’s north shore and a Vermont vacation home. My guy and I have been gently prodding my brother to buy an EV. There’s a great FLO charger in White River Junction at Hampton Inn, halfway between his two homes, which offers a nice boost on a typical 300 mile EV range. He’d be able to recharge at both his homes with a Level 1 exterior plug (we know: we’ve charged at both his homes while visiting with our Chevy Bolt).

And, with the doom-and-gloom Trump team of Merry Pranksters ready to swoop down on all things electric, there’s never been a better time to take advantage of federal tax incentives. Reports are widespread that the Trump transition team is planning to terminate the $7,500 consumer EV credit, an action publicly supported by Tesla CEO Elon Musk.

If you find yourself imagining what it would be like to drive sustainably, now is the time to buy an EV. Go for it, bro.

There are many reasons for consumers like my brother to buy an EV right now. Buyers will save a bundle on fuel — home charging makes owning an EV reliable and affordable, and road trips in an EV are becoming easier. Electric vehicles have no tailpipe emissions — nearly three quarters of the GHG emissions from a gasoline vehicle come from the tailpipe during vehicle operation, and the planet really can’t take many more internal combustion engines if it is to thrive. Then again, if financial considerations are your main focus, the EV tax credit that is fleetingly available will have real meaning for you.

Looking at Q3 2024 EV Sales as a Beginning Place for 2025 Projections

Already, EV sales have surged to what Anne Stanley of Investor’s Weekly cites as “a record high in the US in the third quarter of 2024.” Stanley says that lease deals and a consumer interest in the more affordable range of EVs has prompted the record pace. You can read our own thorough reports on US EV sales in the 3rd quarter here and here.

The new-vehicle sales pace in November is expected to be released at levels near 16 million, equal to October, according to Cox Automotive, and up 0.5 million from November 2023’s 15.5 million pace. November’s sales volume has been forecast to reach 1.32 million, down 1.3% from October but higher by 6.6% from last year’s total.

Incentives like the federal EV tax credit and more model choices drove electric vehicles’ share of sales in Q3 to 8.9%, the highest level yet and a year-over-year increase from 7.8%.

End-of-year sales quotas press right now on automakers. They’re hoping to appease shareholders by projecting the best possible yearly revenue picture. That means dealers are reducing EV sticker prices anywhere from $10,000 and $20,000 — and the most popular models are included in these sales. Add to that oft-marketed 0% financing and limited free charging, and the temptation to buy an EV right now is quite rosy.

January 2025 is a Fine Month to Buy an EV

Sales of electric vehicles will surely skyrocket in January as the incoming administration makes good on its threat promise to eliminate clean-energy incentives such as the federal EV tax credits.

January EV buyers do have an advantage over previous years’ EV buyers — like me — who had to wait until they filed federal taxes to get the EV tax credit. EV buyers can now take advantage of point-of-sale price reductions. It’s a lot easier to calculate costs when the incentive is factored in at the time of purchase.

You also have a used EV rebate. The vehicle must be purchased from a dealer, have a sale price of $25,000 or less, and have a model year two years prior to the current calendar year. If that’s the case, you can get $4,000 off the price.

If you’re in the market to buy an EV and you want the advantage of the IRS EV tax credit, you have more new models than ever from which to choose. Fifty models are eligible for the federal tax credit, which is a positive trend in comparison to the 34 at this time in 2023. If you have questions about which vehicles are eligible, your best bet is to search Fueleconomy.gov for the more accurate, up-to-date information.

Pre-owned all-electric, plug-in hybrid, and fuel cell electric vehicles purchased on or after Jan. 1, 2023 also may be eligible for a federal income tax credit. The credit equals 30% of the sale price up to a maximum credit of $4,000. Pre-owned vehicles purchased before 2023 don’t qualify for this credit. Buyers can check the IRS rules on EV tax credits, including how buyers qualify and which vehicles qualify for updates.

Final Thoughts about EV Tax Credits

California EV shoppers may not need to worry about losing the $7,500 new EV credit if the Trumpsters swing their big hammers on the current EV federal incentive program. Governor Gavin Newsom says he will relaunch that state’s tax credit of up to $7,500 if Trump cuts the EV federal tax credit. However, the revived California EV rebate reportedly may exclude Tesla vehicles. This possibility to exclude Tesla from CA EV tax credits may be arising from personal animosity toward the Tesla CEO since he moved Tesla’s headquarters to Texas, or to provide support for new companies entering the EV market so a varied marketplace maximizes EV adoption and competitiveness, or because of something entirely different.

King Elon aside, the future of the EV market also depends on the fate of the Clean Air Act (CAA) tailpipe air quality and greenhouse gas (GHG) standards. The new Trump US Environmental Protection Agency (EPA) under presumptive incoming Administrator Lee Zeldin is expected to roll back or abandon the Biden administration’s efforts to toughen these standards for model year 2027–2032 passenger cars and light- and medium-duty trucks. This uncertainty could reduce hybrid and EV production and development for the US market and may result in a corresponding reduction in US EV demand if the consumer EV tax credit is rescinded by the incoming Congress.

The Biden administration has authorized California regulations that compel the sale of zero-emission vehicles over the next decade and, ultimately, ban the sale of conventional, gasoline-powered cars in 2035. The California requirements are expected to slash planet-warming pollution, more than halving greenhouse gas emissions from light-duty vehicles in the state by 2040. They’ll also apply outside of California, in New York, Washington, and other states that have opted to follow the mandates, which together account for roughly 30% of the American vehicle market.

Clearly antithetical to the Trumpsters’ vision to “drill, baby, drill,” this late-hour Biden administration ruling will be contentious. It’s best to buy an EV of your dreams now.