Thanks to Popular Pressure, the Senate Left the Electric Car Tax Credit Alone (for Now)

Plug In America is an advocacy group that has been fighting for EVs for a good 15 years.  The group has accomplished a lot in the meantime.  The most recent was forcing the Senate to stop slowing down EV adoption.  And this wouldn’t have happened without consumers putting their foot down and taking part in a democracy or shifting the overbearing lobby pressures that manipulate our political landscape.

The EV incentives are not very well understood.  Most people know $7,500 can essentially be deducted from the price of an electric car, but don’t know much more than that.  While you can get $7,500 back after buying an electric car, it can’t be deducted from the actual purchase of the vehicle — the incentive comes in the form of a tax credit (a reduction in the amount of tax you owe) and depends on a few things.  Mainly, it depends on the battery pack capacity (kWh) of the car being bought.

The problem is that the game isn’t won yet on even this one topic.  The US House and Senate are now tasked with “reconciling” the two bills that have been passed.  In the House one, the EV tax credit was cut.  In the Senate one, as just noted, it wasn’t.  Which of these options will they choose when the reconcile the bills for a final draft?

There are also a few other myths Plug In America is trying to dispel around EV incentives.

The EV incentive doesn’t only benefit rich folks.  According to Plug In America:  “The tax credit states that qualifying new EV purchases are eligible for a base tax credit of $2,500, plus an additional amount based on the battery capacity of the vehicle, not to exceed $5,000.  So, depending on the EV you’re purchasing, you might not get the full $7,500.  The full benefit of the credit really depends on what you choose to drive, not on how rich you are.”

But when it comes to leasing EVs, the confusion becomes apparent.  Many folks we talk to assume EV incentives don’t apply to leases.  Indeed, the credit applies to leases in a way since it typically gets rolled into lower prices or better terms, which benefits low and middle-class consumers.

Read more at Thanks to Popular Pressure, the Senate Left the Electric Car Tax Credit Alone (for Now)