Summary
- Buy an electric car before the end of 2024 to benefit from the $7,500 EV tax credit
- You can also get a tax credit for buying a used electric car
- The EV tax credit for new vehicles influences used EV prices
- Take advantage of the tax credit now before it potentially ends in 2025
- Consider supporting independent cleantech coverage by contributing a few dollars a month
Article
The US EV tax credit is likely to be cut in 2025 by Donald Trump and Republicans, prompting buyers to consider purchasing an electric car by the end of 2024 to benefit from the $7,500 tax credit. This applies not only to new electric cars, but also to used electric cars. The IRS offers a tax credit for buying a qualified used electric vehicle or fuel cell vehicle from a licensed dealer for $25,000 or less, with a maximum credit of $4,000. The tax credit for new vehicles also affects used EV prices, as it reduces the resale value of electric cars, making them more affordable for buyers.
Given the potential changes to the tax credit in 2025, now is considered an opportune time to purchase an electric car. By taking advantage of the tax credit, buyers can effectively reduce the price of a new or used electric vehicle. The influence of the tax credit on used EV prices means that the resale value may decrease, making the cost of purchasing a used electric car more attractive. Without the $7,500 tax credit, the prices of used electric cars are expected to increase, making it more expensive for buyers.
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Overall, the window of opportunity to benefit from the EV tax credit in the US may be closing in 2025, prompting potential buyers to consider purchasing electric cars sooner rather than later. The availability of tax credits for both new and used electric vehicles makes now a favorable time to invest in an electric car. By taking advantage of the tax incentives, buyers can lower the cost of ownership and contribute to the cleantech revolution. Supporting independent media outlets like CleanTechnica can further promote the adoption of clean technologies and sustainability initiatives.
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