{"id":61537,"date":"2024-01-02T10:11:47","date_gmt":"2024-01-02T18:11:47","guid":{"rendered":"https:\/\/energi.media\/?p=61537"},"modified":"2024-01-02T10:21:48","modified_gmt":"2024-01-02T18:21:48","slug":"buying-an-ev-in-the-us-just-got-more-affordable","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/buying-an-ev-in-the-us-just-got-more-affordable\/","title":{"rendered":"Buying an EV in the US just got more affordable"},"content":{"rendered":"

This article was published by Grist<\/a> on Jan. 2, 2024.<\/em><\/p>\n

By Gabriela Aoun Angueira<\/a><\/strong><\/em><\/p>\n

A change to the federal EV incentive that took effect Monday could widen access to EVs for low and middle-income buyers who want to go electric but have been excluded by high prices.<\/p>\n

The\u00a0clean vehicle tax credit<\/a>, which offers up to $7,500 toward a new electric, hydrogen, or plug-in hybrid vehicle, and up to $4,000 for a used one, is now available as an instant rebate at approved dealers. Until now, buyers could not take advantage of the credit until they filed their taxes.<\/p>\n

EV-equity advocates said the change will put buying an electric vehicle within reach of more buyers. \u201cIt\u2019s a huge help,\u201d Irvin Rivero, e-mobility associate at the Bay Area nonprofit Acterra, told Grist. Rivero consults prospective buyers on how to apply for financial incentives, and said some clients either can\u2019t afford the upfront cost or do not earn enough to owe taxes.<\/p>\n

\u201cA lot of people were getting the tax credit, but the people who didn\u2019t have tax liability weren\u2019t benefiting from this program,\u201d Rivero said.<\/p>\n

Consumers bought more than\u00a0one million electric vehicles<\/a>\u00a0in the United States in 2023. The\u00a0average new EV transaction price was $53,469<\/a>\u00a0in July, about $5,000 more than the overall average car price. While some automakers dropped prices toward the end of 2023,\u00a0rising interest rates<\/a>\u00a0are undermining those cuts.<\/p>\n

Part of the Inflation Reduction Act, the clean vehicle tax credit is available to households making up to $300,000, depending on their filing status, and applies to cars costing no more than $55,000 and vans, pickup trucks, and SUVs costing up to $80,000. Used cars must be at least two years old and not cost more than $25,000.<\/p>\n

Rivero said many of those he helps have been waiting for the change to go into effect before buying a car. \u201cIt\u2019s going to get busy at the dealerships, I imagine.\u201d<\/p>\n

To get the rebate, consumers must go to a dealership that is\u00a0registered with the IRS for the program<\/a>. Dealers will either reduce the purchase price or provide cash to the buyer, and will be reimbursed by the IRS.<\/p>\n

Danny Connelly, the general sales manager at Tracy Volkswagen about an hour east of Oakland, California, said his dealership has already registered for the program. \u201cWe expect to sell a bit more cars from it,\u201d he told Grist, adding that some customers have been waiting for the change to take effect before making a purchase. \u201cIt will be an easier customer experience and easier for us,\u201d he said.<\/p>\n

What may become less easy for customers, however, is finding a model that qualifies for the incentive. As part of the Biden administration\u2019s efforts to promote a domestic supply chain for EVs, eligible vehicles must meet certain requirements for how much of their battery components and critical minerals are sourced or manufactured in North America.<\/p>\n

It\u2019s still unclear which cars will qualify, but Taylor Shively of the analytics firm CRU estimates that of the 17 available all-electric models, as few as 10 will qualify for the full credit, and not all variants of a model may be eligible. Tesla, for example, has stated that certain versions of its most affordable offering, the Model 3, no longer qualify.<\/p>\n

Rivero has been telling clients to regularly check the Energy Department\u2019s\u00a0online tool<\/a>\u00a0that shows eligible vehicles.<\/p>\n

It\u2019s also not clear how customers will know which dealers are part of the program. The Internal Revenue Service did not respond to an emailed question about how customers will be able to find out which dealers are registered.<\/p>\n

While the list of qualifying cars is shorter in 2024, Rivero said the rebate creates opportunities for buyers previously priced out of buying an electric vehicle, especially if they \u201cstack\u201d it with local incentives available from their state, local government, or utility.<\/p>\n

Many of Rivero\u2019s customers live in San Mateo County, where a resident buying a used car could also apply for a $4,000 rebate from their utility company, and get around $5,500 from a state program if they turn in an older car.<\/p>\n

\u201cI try to help people stack as many as possible,\u201d Rivero said. \u201cThey can pay less than $5,000 for an EV.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

This article was published by Grist on Jan. 2, 2024. By Gabriela Aoun Angueira A change to the federal EV incentive that took effect Monday could widen access to EVs for low and middle-income buyers [Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":61538,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[1],"tags":[787,611,14,549,598],"class_list":{"0":"post-61537","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-climate","9":"tag-evs","10":"tag-featured","11":"tag-transportation","12":"tag-us"},"acf":[],"yoast_head":"\nEV - Thoughtful Journalism About Energy's Future<\/title>\n<meta name=\"description\" content=\"A change to the federal EV incentive that took effect Monday could widen access to EVs for low and middle-income buyers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energi.media\/news\/buying-an-ev-in-the-us-just-got-more-affordable\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EV - 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