What to know about buying electric vehicles after the federal tax incentives end
Share this @internewscast.com

The massive tax and spending cut bill that Congress passed Thursday ends federal tax incentives for electric vehicles.

Consumers have until September 30 to take advantage of the federal tax credits for electric vehicles (EVs) before these incentives come to an end. Nonetheless, experts suggest that there are compelling financial reasons to consider purchasing EVs even without these benefits.

Previously, new electric vehicle buyers benefited from a $7,500 federal tax credit, while purchasers of used EVs could receive up to $4,000. These financial incentives aimed to make EVs more accessible financially. Data from Kelley Blue Book reveals that on average, a new electric vehicle costs around $9,000 more in the U.S. than a new gasoline vehicle, and used EVs carry a price tag roughly $2,000 higher than their gas-powered counterparts.

These tax credits, combined with various state incentives, played a crucial role in reducing the cost disparity. Without these benefits, Ingrid Malmgren, Senior Policy Director at the nonprofit Plug In America, noted that EVs might become too costly for many Americans with lower or middle incomes.

“That’s really disappointing because … they’re just a really great way to reduce transportation energy cost burden,” Malmgren said.

The up-front cost of an electric vehicle might be higher, but for those who can afford to consider the lifetime fuel and maintenance savings, Malmgren said the EV is still a good financial and environmental move in every state.

EVs are typically still cheaper to own long-term

That is because electric vehicles might not be cheaper to buy, but they are cheaper to drive. Malmgren said that even without the federal tax credits, an electric vehicle owner would still come out ahead.

“Quickly you’ll end up paying less than a gas car because it costs much less to fuel, and it needs almost nothing for maintenance,” Malmgren said.

Malmgren said the point at which an EV driver’s savings on fuel and maintenance outweigh the higher initial price varies. It depends on the kind of car and how often they are driven, as well as the cost of gasoline and electricity in an area. She said EV owners pay less in upkeep because the cars typically have fewer moving parts to maintain and require less frequent servicing. There are multiplecalculators online that pinpoint that moment based on some of those criteria.

A 2020 study in the academic journal Joule found that the average EV in the U.S. charged with a typical mix of public and private chargers saves the driver $7,700 in fuel costs over a 15-year life span, compared to filling a car with gas. Savings vary by state. The study found that someone charging a car at home during off-peak hours, deemed as a best-case scenario, could save more than $14,000 over 15 years in Washington, where electricity is relatively affordable. The study said that an EV driver in any state exhibiting typical driving and charging behavior would save money on fuel costs. The study did not account for the car’s purchase price, its maintenance cost or associated tax credits.

EVs are still cleaner, even when they charge on coal power

Manufacturing an electric vehicle typically creates more pollution than making a traditional gas-powered one. But experts say that driving an EV over the long-term is still less polluting than a gas car.

Once they both drive about 15,000 miles (24,000 km) — slightly more than the average American drives in a year — the total pollution that has gone into making and driving each type of car has evened out, said Peter Slowik, U.S. Passenger Vehicles Lead for the International Council on Clean Transportation. Every mile after that widens the gap between the cleaner electric car and the more pollutive gas car. By the end of the car’s life, emissions caused by the average EV are roughly half the average gas car, according to the U.S. Department of Energy.

So unless you buy a new car each year, the EV is the cleaner choice, he said.

“They are a no-brainer,” Slowik said. “Electric vehicles are already inherently so much more efficient.”

A 2023 analysis by Yale Climate Connections found that electric vehicles are responsible for less carbon dioxide pollution even in areas where the electricity used to charge them comes from coal. An EV in West Virginia, which is one of the most coal-reliant states, still pollutes 31% less than an equivalent gas-powered car, according to the analysis.

Slowik said that is because electric cars are better at translating energy into forward motion. For example, the most popular EVs in the US, the Tesla Model Y and the Tesla Model 3, can drive more than 100 miles (161 km) on energy equivalent to what is provided by a gallon of gasoline.

“If you compare that to a 25-mpg gasoline vehicle, that’s already four to five times more efficient,” Slowik said.

___

The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

Share this @internewscast.com
You May Also Like
Police officer with two children outside a house.

Parents of twins and brother, aged 8 and 10, imprisoned in diapers in Spanish ‘House of Horrors’ since Covid face 25-year jail term

THE parents of three children who were allegedly trapped in a hellish…
Ukraine sees sweeping protests over bill weakening anti-corruption agencies

Ukraine Faces Widespread Protests Against Bill That Undermines Anti-Corruption Efforts

Ukrainians are taking to the streets after the passage of a controversial…
Chicago crime: Angelique Mobley, Lamon Weathers, Matthew Price charged in kidnapping of 2-year-old girl in Bronzeville, police say

Chicago Crime Update: Three Suspects Charged in Bronzeville Kidnapping of 2-Year-Old Girl

CHICAGO (WLS) — Three people are now facing charges in the kidnapping…
Stabbing incident under investigation in St. Augustine

Authorities Investigate Stabbing in St. Augustine

The St. Johns County Sheriff’s Office is investigating a stabbing involving two…
Hulk Hogan's death resurfaces painful contradictions for Black wrestling fans

Resurgence of Conflicted Emotions Among Black Wrestling Fans Following Hulk Hogan’s Death

One of Kazeem Famuyide’s earliest memories is sitting on his father’s lap…
New users get $1,000 no sweat first bet for the 3M Open

New Users Can Enjoy a $1,000 Risk-Free First Bet for the 3M Open

Gambling content 21+. The New York Post may receive an affiliate commission…
Director talks about how a dentist's deception led to murder in the Hulu docuseries 'Trophy Wife: Murder on Safari'

Director Explores the Dentist’s Deception Turning Deadly in Hulu’s ‘Trophy Wife: Murder on Safari’ Docuseries

NEW YORK — A mysterious death on an African hunting trip leads…
Wrecked bus on a hillside.

Double-Decker Bus Falls 164 Feet into Ravine, Leaving at Least 18 Dead and 48 Injured

AT LEAST 18 people have died after a double-decker bus plunged 164ft…
Trump administration to release withheld grants for education programs

Trump government plans to distribute previously withheld funding for educational programs

On July 1, President Donald Trump’s administration put a hold on $6…
Portrait of Camila Trevisol, a rodeo queen, wearing a red cowboy hat and sash.

Courageous Rodeo Queen and Influencer Passes Away at 22 Following Cancer Diagnosis Linked to Football Injury

A RODEO queen influencer has died of cancer at just 22. Camila…
Anya Wick, Jeffrey Epstein's Niece, Shares Harrowing Allegations of Family Abuse and Elite Cults in Shaun Attwood Interview

Jeffrey Epstein’s Niece Reveals Claims of Family Abuse and Involvement in Elite Secret Societies

Anya Wick, claiming to be Jeffrey Epstein’s niece, recounts a childhood of…
As the ADA turns 35, groups fighting for disability rights could see their federal dollars slashed

35th Anniversary of the ADA: Disability Rights Groups Face Potential Cuts to Federal Funding

Nancy Jensen asserts that she might still be enduring life in an…