Looking to buy an electric car? You should do it before October

For more than a decade now, the climate friendly policy has protected and promoted the American electric vehicle industry. In the past two years, this was in the form of a tax credit for electric cars. It was part of former President Joe Biden The law to reduce inflation.

Now, all this is due to the expiration of its validity September 30.

Trump began his attack on tax credit as the first thing to work as a president. The final strike came when the “big, big bill” passed and signed in law this summer, which officially led to a death to obtain tax credit that could provide consumers of up to 7,500 dollars per purchase.

Electric vehicles are increasingly preferred to be climate friendly, especially since governments all over the world are trying to reach carbon neutral goals to reduce climate change risks.

“Transport is the largest source of global warming pollution in the country, and passenger vehicles are the largest source of transportation,” said David Reishmouth, the chief scientist in the Union of Scientists concerned for scientists. “There is no way to make the cuts that we need to make to avoid the worst damage caused by climate change without switching from fossil fuels to electric cars that are powered by renewable energy.”

The tax credit for consumers helps to choose climate -friendly cars without being a financial burden, as the industry offers technology on the way to withstand costs. It also helps the American electric vehicle industry to grow amid intense competition all over the world. The electrical order is The world is overwhelmed by the worldAnd the American industry is directly behind it Chinese And European competitors.

“Getting rid of federal tax credit will not kill EVS, it is already here and it will happen,” he said, adding that he will not only do it instead. Slow momentum in the United States While it contributes to the worst air pollution.

Now, before the credits have disappeared, the American auto industry witnessed Increase in EV sales Like Rush To take advantage of the credit before it disappears.

As long as you get the car before September 30, you are fine to take advantage of tax credit. It does not mean that the car is physically delivered by September 30; This may mean entering into a contract, or a premiership, or trading in an old vehicle, but most likely there are no recovered deposits.

“You have to sign the contract and buy the car, even if it is not delivered until after the end of the month, but you can not only get the waiting list and put 100 dollars and then get the car in six months,” said Reishmouth.

How to claim tax credit

There are three parts of tax credit. One of them is the credit of the new car sales tax, a bonus of $ 7,500 that the consumer can obtain on the tax declaration.

It does not apply to all cars, though: EV must be obtained primarily and assembled in North America, and it should not exceed a certain level of income. For couples who joinly apply, this is $ 300,000; For heads of families, it is $ 225,000; For all other files, it is $ 150,000. There are other qualifiers that you must fit, and you can check to see if the car you think about buying is eligible The official government website.

There is also a used tax credit of up to $ 4,000. the requirements Because this is similar. There is an income ceiling that you cannot exceed, the sale price of the car should be less than $ 25,000, and the car should be at least two years.

Once you buy a car that fits the requirements, all you have to do is File IRS model 8936 when the tax season comes. To complete this form, you will need your car vehicle’s identification number, which is a unique code of 17 characters that you can find on your car registration card.

Reichmuth says the final and most used tax credit is the rental credit, which is also $ 7,500, and has restrictions on what he qualifies for cars. This is actually a clean commercial vehicle credit claimed by the rental company, not the consumer. Instead, it is translated into reducing costs for consumers. So you get the financial interest without the need to worry about tax decisions. Richmouth said there are many agents who are still renting electric cars at cheap prices as they are trying to get empty shares before the credit decreases and the demand decreases.

There are still incentives at the state level

Federal tax credit may go away, but there is a variety of government and regional incentives that can make the purchase of electric vehicles easier. there Online databases You can use to search for incentives that are presented in your state.

Reichmuth also believes that we will see more incentives at the state level now emanating after the federal government is back step back. For example, before Federal tax credit, California got a state incentive at the state level of EV customers. Reichmuth expects that the program is somehow.