Why You Should Buy An Electric Car Now: Tax Credit In Jeopardy?
Why should you jump on the purchase of an electric car right away?
For those who aren’t in the loop, the U.S. federal EV tax credit is looming for Tesla and General Motors. We’re talking about $7,500 off a new car if your tax situation allows it. We’d suggest checking with a tax professional to make the determination.
Tesla has already officially surpassed 200,000 electric vehicles delivered in the U.S. to date. The automaker is now approaching its last “free” quarter wherein customers can receive the full $7,500 rebate. After the next quarter, the savings dial down every quarter until the rebate disappears. According to our data and heavily researched estimates — which are adjusted when official quarterly data is disclosed — GM has sold 189,758 EVs. This means, in the next four months or so, the automaker will join Tesla in the sunset period.
If you live in Canada, you’re likely well aware that Ontario recently canceled its EV tax incentives and Tesla is now reportedly suing over the situation. In the U.S., the Trump Administration has already made it increasingly clear that they may do the same thing at any moment. Of course, Congress would have to approve it. The situation already presented itself and was thought to have already put the credit in a dire situation, but fortunately, it’s safe for the time being.
Nonetheless, we’ve seen a ton of legislation that rallies against the premise of electric vehicles and clean air. Additionally, Trump replaced on oil-friendly EPA chief with another that denies climate change. It’s not going to get any better anytime soon.
With that being said, taking advantage of purchasing an electric vehicle now and working out the specifics surrounding your current tax situation is a necessity. If you wait too long, that credit may either dwindle or vanish. So, if you’re on the fence, now’s the time to buy.
If you have any questions or concerns, hit us up in the comment section or at our site email.