Yahoo Autos Trump Is Reportedly Planning to Nix Federal EV Tax Credits
President-elect Donald Trump and his transition team want to end federal EV tax credits, per a report by Reuters.
The report claims that killing the $3750–$7500 government subsidy is part of wider tax-reform legislation.
While leasing opens up the credit to more models, currently there are only 15 EVs and six plug-in hybrids that you can purchase and get the credit.
As it stands today, when you buy certain new electric or plug-in-hybrid vehicles, the United States government will give you a tax credit of either $3750 or $7500. Leasing an EV or PHEV is another way to get the credit. However, that incentive program is likely going away under the incoming presidential administration. Reuters today reported that U.S. President-elect Donald Trump and his transition team are planning to get rid of the federal tax credits.
The federal tax incentives were part of the Inflation Reduction Act, which was passed by the Biden Administration. According to Reuters, two unnamed sources who are familiar with the plan claim that Trump's team aims to pass wider tax-reform legislation that will include nixing the federal subsidy for eligible EVs and plug-in hybrids.
To qualify for the tax credit, the electric or plug-in-hybrid vehicles must be built in North America, meaning Canada, Mexico, or the United States. Cars also need to have an MSRP of $55,000 or less, while light trucks and SUVs must cost less than $80K. Meanwhile, leasing provides a loophole because the U.S. Department of Treasury classifies them as commercial vehicles.
When it comes to purchasing a new EV or PHEV, the list of eligible models isn't that long. Currently, the EPA lists 15 electric models, with some qualifying for the partial $3750 or the full $7500 credit. The list of plug-in hybrids is even shorter, with only six qualifying models, all of which only get the $3750 credit.
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