July 25, 2024
Electric & Hybrid Cars

US 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 milestone was announced on Wednesday morning, with more than 150,000 total payments issued under the program. Of these, over 125,000 were advance tax credits for new electrified vehicles.

“President Biden’s Inflation Reduction Act has led to more than $1 billion in upfront savings for American consumers since January, lowering costs for electric vehicle purchases. This discount is expanding consumer choices and providing new opportunities for companies to grow their customer base,” stated Secretary of the Treasury Janet L. Yellen. “Consumers are experiencing immediate savings as well as long-term benefits, with an estimated $1,750 saved on gas and maintenance annually, and up to $21,000 saved over the lifetime of a vehicle.”

While the long-term savings may seem like a sales pitch for Tesla, the administration supported their claims with data. Treasury’s Office of Economic Policy estimates that electric vehicle owners can save between $18,000 and $24,000 more over the 15-year lifespan of a vehicle compared to purchasing a comparable gasoline vehicle. The savings are primarily attributed to lower fuel costs for electric vehicles.

According to the analysis, maintenance costs for EVs are approximately 40% lower than for traditional internal combustion engine vehicles.

The Inflation Reduction Act incentivizes electric and plug-in hybrid vehicles manufactured in the USA. Recently, the administration made adjustments to EV battery sourcing regulations, potentially expanding the pool of eligible vehicles for credits in future model years.

 

FAQ

1. How much have Americans claimed in EV purchase credits under the Inflation Reduction Act?

Americans have claimed over $1 billion in new EV purchase credits.

2. What are the estimated long-term savings for electric vehicle owners?

Electric vehicle owners can save between $18,000 and $24,000 over the 15-year lifespan of a vehicle compared to purchasing a gasoline vehicle.

Conclusion

The Inflation Reduction Act has proven to be a successful initiative in promoting electric vehicle adoption in the United States. With over $1 billion in savings for consumers and incentives for domestic vehicle manufacturing, the program is driving significant growth in the EV market.

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