Time-Sensitive Opportunity for Electric Vehicle Buyers
Prospective electric vehicle (EV) buyers, take note: you may want to accelerate your purchasing plans to take advantage of a valuable tax credit worth up to $7,500. With the incoming administration likely to axe these savings in tax negotiations next year, experts warn that waiting could mean missing out on this lucrative incentive.
Uncertainty Looms Over EV Tax Credit
The Inflation Reduction Act, signed into law in 2022, offers federal EV tax breaks through 2032 for consumers who buy or lease new or used EVs. However, President-elect Donald Trump’s transition team reportedly aims to eliminate these credits to raise money for a broad package of tax cuts. Elon Musk, CEO of Tesla, has also called for an end to the credits, claiming they hurt his company’s U.S. competitors.
Act Fast to Lock in Savings
Consumers who buy or lease an EV by the end of 2024 can reduce the risk of missing out on the credit. Dealers can pay the funds upfront at purchase, making it easier for consumers to access the savings. Those who sign a lease agreement by year’s end can lock in their savings contractually over a multiyear lease term, even if the term overlaps with Trump’s presidency.
Caveats to Consider
While consumers can take advantage of the tax credit, they should carefully review lease agreement terms. Some dealers may include clauses that increase monthly lease payments if the tax credit is denied. Additionally, there is uncertainty over how a future Republican tax package might affect the EV credit, with some experts predicting a phase-out in 2026 or 2027 rather than a retroactive elimination.
Don’t Wait – Take Advantage of the Credit Today
With the fate of the EV tax credit uncertain, consumers should consider acting quickly to secure this valuable incentive. As one prospective buyer, Laura, noted, “If it’s not going to be in by the end of December 2024, then that changes everything for me.” Don’t miss out on this opportunity – take advantage of the EV tax credit while it’s still available.
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