Lates News

The approval of comprehensive tax and budget legislation by the U.S. Congress on Thursday means that the $7,500 tax credit for purchasing or leasing new electric vehicles will expire on September 30th, along with the $4,000 tax credit for used electric vehicles. In recent years, these tax credits have benefited the sales of electric vehicles. The U.S. Congress first approved the $7,500 electric vehicle tax credit in 2008 and gradually phased it out as the number of electric vehicles produced by manufacturers reached 200,000. In 2022, the incentives were expanded to include leased vehicles and removed the cap for each manufacturer. Barclays Bank automotive analyst Dan Levy said that phasing out the tax credits in less than three months means that electric vehicle sales will see a significant jump through "pre-purchasing," followed by a sharp decline in the following months.