There is anticipation of a revamping of the $7500 electric vehicle (EV) tax credit, potentially having a significant effect on the Tesla Model Y, currently the United States’ top-selling EV. Those considering purchasing an EV intending to benefit from the tax credit may require expediting their plans in the light of potential changes under President-elect Donald Trump’s administration. While they may not be immediate, where these changes could affect the cost reduction benefits of EV tax credits, it might be wise to consider making those purchases sooner.
If the $7500 federal tax credit is revised or scrapped, it could greatly affect any electric vehicle currently qualifying for the credit. This list extends to Tesla Model 3, Cadillac Lyriq, Honda Prologue, Chevrolet Blazer EV, Chevrolet Equinox EV, Ford F-150 Lightning, Volkswagen ID.4, Rivian R1s and R1T (partial), and other EV models. However, the notably affected will be the Tesla Model Y, America’s best-selling EV.
President-elect Trump has been vocal about his disapproval of the tax credit. Changes to the EV tax credit are uncertain but are expected not to be immediate as they may not be a top priority for the new administration. Therefore, it might be a strategic decision to consider purchasing or leasing an EV before January 20th.
However, Tesla’s CEO Elon Musk has stated that Tesla would still fulfil the requirements even if the incentives were cut. Other automakers’ response to any potential revision or removal of the tax credit is uncertain.