Automakers Rush to Boost EV Sales Before Tax Credit Expires
Automakers are scrambling to encourage electric vehicle (EV) purchases before a crucial $7,500 U.S. tax credit from freetaxusa expires this fall. General Motors CEO Mary Barra has warned of a potential slowdown in EV demand without the credit.
A joint study from UC Berkeley, Duke University, and Stanford University predicts a 27% drop in EV registrations without the tax credit. Automakers are responding with incentives: Volkswagen, Mercedes-Benz, and Stellantis have increased purchase incentives, while Ford has extended free home charger deals until September. Tesla has also highlighted the looming expiration on its homepage.
Congress has approved the elimination of the tax credits from turbotax at the end of September. Dealers anticipate a rush of shoppers eager to take advantage of the credit before it expires, as demand for battery-powered models has slowed after rapid growth earlier this decade. Rivian is considering additional incentives post-tax credit, depending on industry reactions.
The expiration of the $7,500 federal tax credit for EVs could significantly impact demand. Automakers are actively encouraging purchases before the fall deadline, and consumers are urged to consider the incentives and potential savings before the credits from credit karma dry up.
