American consumers have saved more than $1 billion on electric vehicles in 2024 thanks to federal tax credits, promoting cleaner energy and easier access to savings, although restrictions apply to vehicles from certain countries and recent tariff changes.
Federal Tax Credits Lead to Over $1 Billion in Savings for American Electric Vehicle Buyers
According to the article of UPI, The Treasury Department and IRS announced that American consumers saved over $1 billion on electric vehicle purchases in 2024 through federal tax credits. The program, part of the Inflation Reduction Act, offers up to $7,500 for new and $4,000 for used electric vehicles at the point of sale, promoting cleaner transportation choices and reducing reliance on gasoline.
Treasury Secretary Janet Yellen credited President Biden‘s Inflation Reduction Act for significantly cutting costs for electric vehicle buyers. In addition to upfront savings, electric vehicles save drivers approximately $1,750 annually on fuel and maintenance costs, totaling about $21,000 over the vehicle’s lifetime. Federal officials noted electric vehicles are about half as expensive to travel 1,000 miles in compared to gasoline-powered vehicles, benefiting both the environment and consumers.
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Over $1 Billion Saved: U.S. Consumers Benefit from Electric Vehicle Tax Credits – Must Know! (PHOTO: Automotive News)
Limitations on Tax Credits for Imported Electric Vehicles Highlighted Despite Easier Access for American Buyers
Furthermore, while the program has been successful, there are some exceptions. For instance, the tax credit generally can’t be applied to vehicles imported from countries like Russia, China, Iran, and North Korea. Recently, the Biden administration increased tariffs on Chinese electric vehicles as part of efforts to support American manufacturing. The process for consumers to get the tax credit has been made easier too. Now, buyers can get the credit right away when they buy the vehicle instead of waiting months until they file their annual tax return.
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