With the end of 2024 approaching, electric vehicle (EV) enthusiasts and prospective buyers face a significant deadline: the phase-out of the federal EV tax credit as we know it.
Former President Trump has made it known that he intends to wipe out this credit, which will be a loss of up to $7,500. Below are some of the best EVs you can purchase before the end of the year to maximize this incentive.
What the $7,500 EV Tax Credit is, and how it benefits buyers
The federal government has long provided incentives to promote the use of electric vehicles, and one of the incentives is a tax credit of $7,500. This program was intended to bring down the cost of EVs so that the shift from gasoline cars to better environmentally friendly cars could be enhanced.
The credit applies to new EVs bought in 2024 and gives a tax credit to the buyer, thus making these vehicles affordable. However, the rules and qualification criteria are complicated since they depend on factors such as the vehicle’s price and place of manufacturing.
Best electric vehicles to purchase before the federal credit disappears
Some EVs are still eligible for the full $7,500 tax credit, which means that now is the best time to buy an electric car. Here are some of the best options:
- Acura ZDX (2024): The Acura ZDX is designed as a luxurious and stylish automobile that is at the same time based on General Motors’ Ultium platform, which means that it is an electric car. It has an MSRP under $80,000, which makes it eligible for the full tax credit, thus a fine choice for those who need a luxury car without spending large amounts of money on it.
- Chevrolet Bolt EV and Bolt EUV (2022-2023): For those who want something cheaper, the Chevrolet Bolt EV is the best bet for an affordable electric car. Being below $55,000, both Bolt EV and Bolt EUV are eligible for the full tax credit, enabling cost-effective change to electric cars.
- Ford F-150 Lightning (2022-2025): Similarly, fans of pickup trucks can also make use of the federal tax credit and Ford F-150 Lightning comes in standard and extended-range battery options. Starting from $77,800, the F-150 Lightning is a product of Ford that unites the reliable truck with the environmentally friendly electric car.
- Tesla Model 3 and Model Y: Tesla electric cars are still popular with consumers. Model 3 Long Range and Model Y are eligible for the $7,500 tax credit, making them perfect for those who want innovation and performance from Tesla. The Model 3 costs just under $55,000, while the Model Y is a larger, more flexible car with a top price of $80,000.
Why you should act fast before the $7,500 tax credit expires
Although the $7,500 tax credit has been the deciding factor for many people looking to buy an EV, it will not be around for much longer. This specific financial incentive is also not sustainable since Trump stated his plans to get rid of the tax credit in his economic plans. If you have not yet decided to buy an EV, it is high time you do so because the chance may not be around for long.
The federal EV tax credit was originally aimed at fighting climate change and lowering the level of CO2 emissions by increasing the number of EV owners. The future political shifts would determine what other benefits will replace these institutions, hence the need to act now.
To be eligible for the full $7,500 tax credit, there are a few things that you should consider. First, ensure that the vehicle you have an interest in meets these factors: price, place of manufacturing, and the source of batteries. Some of those car manufacturers include General Motors, Ford, and Tesla; however, these cars have some limitations.
Furthermore, you will have to make sure you fit the requirements that the IRS has set, such as having a tax liability of not less than $7,500 for that year. If your taxation amount is low, the credit amount will decrease. Note that you must seek the services of a tax consultant who can tell you how much of the credit you can claim and the implications for your tax returns.
Final thoughts: Make your EV purchase before the deadline and save
The federal $7,500 EV tax credit is one of the main practical arguments for those who want to use an electric car. However, with the credit set to expire with Trump’s administration, there is limited time remaining to save money this way.
Anyone who wants to buy a new EV should do so by the end of the year if they intend to claim the tax credit. From the Chevrolet Bolt, Ford F-150 Lightning, Tesla Model 3, and many more, there is a variety of options for anyone willing to make the change.
