July 25, 2024
Electric & Hybrid Cars

American car buyers have received over $1 billion in federal EV incentives

Americans have now received over $1 billion in new EV purchase credits and other point-of-sale subsidies under the Inflation Reduction Act, according to the U.S. Treasury Department. This represents a significant milestone for the program which began in January. More than 150,000 payments have been issued, with over 125,000 being advance tax credits for new electrified vehicles.

“President Biden’s Inflation Reduction Act is reducing costs for electric vehicle purchases, providing over $1 billion in upfront savings for American consumers since January. This discount is expanding consumer choices and creating new opportunities for companies to grow their customer base,” stated Secretary of the Treasury Janet L. Yellen. “Consumers are benefiting from immediate savings as well as long-term advantages, including $1,750 in annual savings on gas and maintenance, and $21,000 saved over the lifetime of a vehicle.”

The long-term savings may resemble a Tesla sales pitch, but the administration presented data to support their claims.

“Based on analysis from Energy Innovation Policy & Technology, Treasury’s Office of Economic Policy estimates that over a 15-year vehicle lifespan, electric vehicle owners can save $18,000 to $24,000 more compared to purchasing a similar gasoline vehicle. Fuel costs play a significant role in these savings, as electric vehicles generally have lower fuel costs per mile compared to gas-powered vehicles,” the announcement explained. “Additionally, maintenance costs for EVs are typically 40% lower than for traditional ICE equivalents.”

The Inflation Reduction Act prioritizes electric and plug-in hybrid vehicles made in the USA. While some restrictions on EV battery sourcing have been eased by the administration, potentially increasing the number of eligible vehicles for credits in future model years, the details are still being finalized.

 

FAQ

Q: How much can consumers save on gas and maintenance annually with the Inflation Reduction Act?

A: Consumers can save $1,750 each year on gas and maintenance costs.

 

Conclusion

The Inflation Reduction Act has made significant strides in lowering costs for electric vehicle purchases and providing substantial savings for American consumers. With over $1 billion in incentives and discounts, the program is not only benefiting consumers in the short term but also offering long-term advantages in terms of savings on fuel and maintenance. The future looks promising for electric vehicles in the U.S., with more opportunities for growth and sustainability.

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