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While the Obama administration's plan to offer $100 billion in additional electric car subsidies has been removed from the infrastructure bill moving through Congress, those considering an EV because of the incentives shouldn't be concerned. This most recent expenditure program was intended to extend the existing incentives and enable manufacturers like Tesla and General Motors that had used up their credits to qualify for them.
However, the current program is still in force, and there are several ins and outs to consider if you want to take advantage of it. Here are the details you need to know.
Federal Tax Credit Worth $7,500
The most well-known government incentive is a $7,500 federal tax credit for certain alternative-energy automobiles. That can lower the price of a more fuel-efficient automobile, but it doesn't always apply. The tax credit was introduced in a 2009 legislation and continues to apply to 2010 and later plug-in electric cars.
You Don’t Get the Tax Credit Right Away
The first thing to know is that you must pay the government a portion of your purchase price. The tax credit is simply referred to as a tax credit. It isn't really a discount; it's a government policy that allows you to claim up to $7,500 in credit against your federal income taxes for each vehicle you buy.
Your Electric Utility May Help
Finally, it's not only the government that can assist you with the expense of a new electric car. They can range from significant discounts to modest discounts on electricity for charging during off-peak times. Some local energy companies offer incentive programs for electric car buyers.
The current federal program is kind, and there are several inexpensive EVs on the market from companies with lots of these credits to distribute. If you want to go electric or convert your gasoline vehicle to a plug-in hybrid, now is the time.
However, if you really want a Tesla or GM's new Hummer EV (or Cadillac Lyriq, which is set to arrive in 2018), it would not be disadvantageous to wait and see whether the EV tax perks return in Congress.
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