Summary
- US EV tax credit revived and expanded under Democrats and President Joe Biden
- Loophole included in the policy allows dealers to collect tax credit on leased EVs
- J.D. Power study confirms that EV sales increased due to the Inflation Reduction Act
- Concerns that Republican policies could negatively impact EV sales
- EV market share reached 9.1% in 2024, driven by expanding charging infrastructure
Article
In March 2025, Democrats and President Joe Biden revived the US EV tax credit, expanding it to include used electric cars and some companies like Tesla. The renewed and expanded EV tax credit was expected to lead to an increase in EV sales, contributing to slowing down climate change and improving air quality. However, the impact of these policies on EV sales was unclear, as other factors like market options, technology improvements, and public concern for the climate crisis could also influence sales growth.
J.D. Power’s 2025 U.S. Electric Vehicle Experience (EVX) Ownership Study revealed that the Inflation Reduction Act (IRA) significantly increased EV sales. More EV owners indicated receiving federal tax credits or rebates, with over half of battery electric vehicle (BEV) buyers citing tax credits as a reason for purchasing their vehicle. J.D. Power forecasted that EV sales would remain flat in 2025 due to these policy changes, emphasizing the importance of government support for EV adoption and the potential negative impact of policy reversals.
US EV sales saw an increase in 2024, with BEVs reaching a market share of 9.1%, up from 8.4% in 2023. The growth was fueled by the entry of more mass-market BEV models into the market and the expansion of EV charging infrastructure. Despite challenges regarding public charger availability, satisfaction among mass-market BEV owners increased year over year, indicating progress in infrastructure development. The Bipartisan Infrastructure Law and the IRA played a significant role in funding EV charging infrastructure expansion, contributing to the growth of EV sales.
The study highlighted the importance of policies and initiatives that support EV adoption, such as tax credits and infrastructure investments. Public charger availability remains a crucial factor influencing EV ownership satisfaction, with improvements noted among mass-market BEV owners. The opening of the Tesla Supercharger network and ongoing infrastructure buildout have contributed to narrowing the satisfaction gap between premium and mass-market EV owners. The report underscored the positive impact of policies passed by Democrats in facilitating EV sales growth and emphasized the potential consequences of policy changes on the EV market.
The study emphasized the role of government policies in driving EV adoption and sales, noting the influence of tax credits, rebates, and infrastructure investments on consumer decisions. It highlighted the importance of ongoing support for EV incentives and charging infrastructure development to sustain the growth of the EV market. The findings underscored the impact of policy decisions on EV sales, indicating the need for continued government support to accelerate the transition to electric vehicles and address climate change concerns. Overall, the study emphasized the interconnected nature of policy, infrastructure, and consumer behavior in shaping the future of transportation and environmental sustainability.
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