Cash on the (electric) hood… Snaggin’ an EV could get a lot easier. On Friday, the Treasury Department proposed a rule that would let EV and plug-in-hybrid buyers get up to $7.5K in tax credits right at the dealership. FYI: Most EV drivers have been eligible for the “clean vehicle” tax credit since last year, but confusion over who qualifies and which models are eligible have made the process a hassle. Now:
Cash back: Instead of waiting a year for a tax-szn refund, the new rule lets buyers transfer their credit to dealerships and get discounted off the sticker price right away (or receive a cash refund in days).
Gas cap: Single filers with an income under $150K/year (or married couples making under $300K+) are eligible. But since most of the US falls under that threshold, the insta-rebate could rev up adoption.
Price-tag tune-up… While EVs have surged in popularity, lots of mid- to low-income earners have stayed on the fence, mostly because of cost. Case in point: 42% of Americans still think electric cars are too expensive. Now the industry’s slashing prices: Tesla's Model 3 sedan today costs $38.9K — $8.7K less than the average car or truck — after Musk’s company cut prices several times. In August, luxury-EV maker Lucid cut its Air sedan price by $5K.
Accessibility drives adoption… EVs made up 7% of all new cars bought in the US in the first half of the year, but make up only about 1% of cars on the road. If the rule passes, policy experts say it could even the playing field for millions of Americans who’ve been priced out. The rule could also help Biden’s goal of EVs making up half of new-car sales by 2030.