You Can Still Get a Federal EV Tax Credit
A federal tax credit for the purchase of a new and a used electric vehicle is still available.
“The tax credit is enshrined in law, and only Congress can change that law,” EVA board member John Higham tells Marketplace.
Republicans in Congress are pushing to make that change. U.S. Sen. John Barrasso of Wyoming introduced a bill in February that would repeal the tax credit. Republicans in the House have taken aim at the credits, too, as part of their efforts to extend President Trump’s first term tax cuts, according to Marketplace.
But Higham believes the credit may survive all that.
“The way the tax credit is structured, it's actually helping, I hate to be political, but just helping red districts more than blue districts,” he said.
The Biden administration structured the credits to boost domestic manufacturing. To qualify for the tax credit, new EVs and a portion of their batteries need to be assembled in North America. So carmakers built more EV assembly lines and battery plants in the U.S., mostly in Republican districts.