Could the Power Go Out On Federal EV Tax Credits?
A primer for navigating uncertainty surrounding key incentives.
by #1 Cochran
December 16, 2024
Patience or purchase now? It’s a question many potential electric vehicle buyers are asking themselves in light of recent news. “I would encourage consumers to take advantage of the tax credit while it’s a known entity,” said Ingrid Malmgren, senior policy director at Plug In America, in a recent interview with CNBC.
Congressional lawmakers are gearing up to debate new tax legislation in 2025. Concerns over the federal deficit and battles over potential cuts have many automotive industry analysts predicting that the $7,500 federal EV tax credit will be slashed. The 2022 Inflation Reduction Act made the credit available for qualifying electric vehicles and Plug-In Hybrid Electric vehicles (PHEVs).
Repealing the credit would take congressional approval, and any changes would be part of a larger tax reform package. Reuters has reported that organizations like the Alliance for Automotive Innovation have lobbied congress to protect the incentive. But with the credit’s fate in limbo, EV buyers have extra motivation to act now.
Locking in Your Savings Now
While the tax credit is at risk in 2025, an important development earlier in 2024 bodes well for consumers who purchase before the year ends.
Licensed automotive retailers can now apply for the $7,500 tax incentive on behalf of the customer. This means that when you buy, lease, or finance at #1 Cochran, you get the savings as a price cut at the time you purchase. Not only is it convenient but your savings are guaranteed regardless of what’s decided in future legislation.
For the consumer, your purchasing decision becomes a question of how much risk you’d like to take on. Buy before the end of 2024, and you enjoy the certainty of the $7,500 tax credit. Put it off until 2025, and you could find yourself caught between the seesawing debate among legislators.
On the bright side, many state and local incentives exist that provide even more discounts. The Pennsylvania Department of Environmental Protection offers income eligible PA residents up to $2,000 for the purchase of EVs and PHEVs. Home charger rebates and discounts from electric utility companies are available as well.
Manufacturer Lineups Expanding
So, while we don’t know for sure what will happen to the $7,500 federal tax credit, we do know there’s never been a wider range of electric models available. Nearly all our 19 new car brands have either fully electric or hybrid electric options. Plus, a slate of all-new vehicles have recently been released, including:
- 2025 Volkswagen ID. Buzz electric bus
- 2025 GMC Sierra EV Denali truck
- 2025 Cadillac Escalade IQ SUV
- 2025 Chevrolet BrightDrop electric van
There are also numerous advantages to shopping at your local #1 Cochran location. We have the largest new and preowned electric vehicle selection in the Pennsylvania, Ohio and West Virginia tri-state area. Our commitment to a no-hassle buying process extends to EV test drives. We offer two-day extended test drives so you can have total confidence about a vehicle being the right fit. We’ll even help you find and finance a home charger so you’re never without a charge.
While buying a vehicle during the holiday season may seem like a decision made only in popular commercials, it makes sound financial sense for the EV buyer. You’ll secure your $7,500 federal tax credit, take advantage of year-end lease and finance specials from #1 Cochran and benefit from the region’s biggest dealer-owned charging infrastructure.
To shop our inventory and find incentives, visit Cochran.com.
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