The Government Has Issued More Than $1 Billion in EV Tax Credits This Year

Chris Teague
by Chris Teague

Regardless of how you feel about EVs and the tax credits offered by the federal government, the truth is that people are using the incentives. Since January 1, EV buyers have seen more than $1 billion in savings on their purchases, with around 150,000 new and used vehicle sales so far this year.

Importantly, that $1 billion number does not include leases, which would push the figures much higher. The government’s incentives are likely more popular this year because they changed from a year-end tax credit to a point-of-sale “discount” that buyers can use to immediately reduce their purchase prices.

The incentives have played a pivotal role in boosting EV sales, and the Biden Administration is continuing to push for a more robust charging network and protections against EVs from China. Credits of up to $7,500 are available, with half tied to the sourcing of battery raw materials and the other half to the vehicle’s final manufacturing location.

Even with the success of the credits, challenges remain for continued EV adoption growth. The government’s investments in public charging networks have so far yielded only incremental growth in the number of charging stations in the wild. Tesla, whose Supercharger network is widely regarded as being the most reliable and easiest to use, may take a step back with the automaker’s recent layoffs, though other companies may step in to fill the gaps.

[Images: Cadillac/GM, Ford, Chrysler/Stellantis]

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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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  • ToolGuy ToolGuy on Jun 16, 2024

    $1 billion / 333.3 million = $3 per U.S. person ¶ And what do I get for my 3 bucks -- cleaner air and lower fuel prices? I might be ok with this 🙂🙂

  • TooManyCars TooManyCars on Jun 16, 2024

    VoGhost; I was referring more to the Canadian context, but the same graft is occurring in the US of A and Europe. Political affiliation appears to be irrelevant.

  • VoGhost Fantastic work by Honda design. When I first saw the pictures, I thought "Is that a second gen Acura NSX?"
  • V16 2025 VW GLI...or 2025 Honda Civic SI? Same target audience, similar price points. Both are rays of sun in the gray world of SUV'S.
  • FreedMike Said this before and I'll say it again: I'm not that exercised about this whole "pay for a subscription" thing, as long as the deal's reasonable. And here's how you make it reasonable: offer it a monthly charge. Let's say that adaptive headlights are a $500 option on this vehicle, and the subscription is $15 a month, or $540 over a three year lease. So you try the feature for a month, and if you like it, you keep it; if you don't, then you discontinue it, like a Netflix subscription. In any case, you didn't get charged $500 up front the feature. That's not a bad deal.In my case, let's say VW offers an over the air chip reflash that gives me another 25 hp. The total price of the upgrade is $1,000 (which is what a reflash would cost you in the aftermarket). If they offered me a one time monthly subscription for $50 to try it out, I'd take it. In other words, maybe the news isn't all bad.
  • 2ACL A good car, but - at least in this configuration -not one that should command a premium. Its qualities just aren't as enduring as those of Honda's contemporary sports cars. For better or worse, this is a formula they remain able to replicate.
  • Jalop1991 I just read that Tesla's profits are WAY down "as the electric vehicle company has faced both more EV competition from established automakers and a slowing of overall EV sales growth." This Cadillac wouldn't help Tesla at all, but the slowing market of EV sales overall means this should be a halo/boutique car. Regardless, yes, they should make it.