Rip credit electric vehicle tax. This is what comes after that

Darling dear, we gather here today to celebrate a life Credit electric vehicle tax.

It signed the law of former President Joe Biden in 2022 as part of the law to reduce inflation, for a period of three years of his life, and the tax credit of electric cars is calm on the financial burden of manufacturers and consumers as Americans began moving from cars based on fossil fuels to more than the electric climate.

The transition to cleaner electric cars is a major part of the global effort to reduce carbon fingerprint in humanity and combat climate change. But electric vehicles are a new industry, technology is still expensive and growing, and has a difficult battle against the institution, and is still directly and indirectly Backed The automotive industry on fossil fuel.

“We need incentives to help try to replace the largest possible number of gasoline cars with electric cars.” “Transport is the largest source of global warming pollution in the country, and passenger vehicles are the largest source of transportation. There is no way to make the cuts we need to avoid the worst damage caused by climate change without switching from fossil fuels to cleaner -powered electric cars.”

Tax credit also helped build the American electric car industry and Re -manufacturing To North America at a time when Chinese and European competitors run circles around the American electric car industry. To qualify for tax credit for electric cars, vehicles were assembled in North America.

But all this ends today, as tax credit ends officially. President Trump is to thank that.

Trump was never shy than hating the credit of the electric vehicle tax on the campaign trail. When he was elected president, he was one of the first work orders to start the motivation dismantling process. This process was completed when the “Great Great” Bill of Congress approved and signed to become a law in July.

What is tax credit?

The tax credit for electric cars was three times: the credit of the new car sales tax of up to 7500 dollars and credit for used car sales tax of up to 4000 dollars, both of which consumers can return to tax declarations, and tax credit of a rent of up to 7500 dollars required by rental companies and translated to low costs for consumers.

Even before Biden is paid for electric vehicle tax credit, climate friendly policy in one or another has protected American electric vehicle manufacturers for more than a decade.

The predecessor of the current electric vehicle tax credits were presented for the first time in 2008, under the second administration of Republican President George W. Bush. But there was a maximum number of discounts for each factory, so the benefits ended faster for big names such as Tesla. EV’s tax credit from Biden changes and expands the base more to include new eligibility requirements, such as setting an income limit and requires that the final assembly site be in North America.

What now?

The end of the tax credit on the horizon led to a Standard In the sales of electric vehicles in August and September, companies tried to empty their EV shares, and consumers who were considering buying or renting EVS rushed to obtain their appointments before the deadline.

To move forward, experts have bleak sales expectations for electric cars, at least in the short term, as those who would buy EVS, for example, already in November or December.

In the long run, though, the demand is likely to decline again, although it is likely to be slower than before, at least in the foreseeable future.

Jose Monuz, CEO of Hyundai Motor Correspondence Earlier this month, although the company expects to decrease the short -term demand, in the long -term to the long term, they expect the electrical demand to continue to grow.

In the end, the cancellation of this tax credit must be improperly affected by the new arrivals in the electric car industry. Although big names such as Tesla and Rivian will be more likely, somewhat, through the decrease in the demand for consumer, will continue to control the market while other auto manufacturers decline to EVS, and the possible new competition is discouraged from entering the industry. CEO of Tesla Elo Musk last year Call To the end of the subsidies himself, saying that “It will only help Tesla.”

Reishmouth said that the matter will not affect the relatively low -income buyers who relied on costs to buy electric cars, while EVS is likely to continue in the luxury car market to see demand from higher income buyers whose tax credit was less than the reason for purchase.

“This may change some decisions, but perhaps not much, you are probably interested in buying EV for other reasons besides tax credit.”

Countries and companies are likely to enter

So what do you do? Is everything air and depression for electric cars? Most likely no.

Electric cars here to stay. They are a major part of the fight against climate change, and they have them High dependence Prices in other places of the world, especially when the industry has received great government support.

Even American companies that decline production in the face of an unconfirmed organizational environment undertake to return.

In response to the finishing of the tax credit EV, General Motors Output In a large factory in assembling electric cars, workers were temporarily accelerated, and indefinitely delayed at the Kansas City collection factory that was to produce Chef Elephic nails later this year. Nevertheless, CEO Mary Barra recently said that the electric cars are still North Star for the company.

The cost should decrease to make EVS more attractive to consumers. In the absence of federal leadership on this issue, Reichmuth suggests that companies that are still devoted to an electric future will take things with their own hands, and the state organizers are likely to enter.

Motor manufacturers that have built the capacity of the electric car, such as GM or Hyundai, may start offering incentives such as cash, special interest rates, discounts, rental deals, and more to reduce the cost of electric cars, similar to those provided to different gasoline vehicles that are It is considered a slow sellers.

It is also possible that states and other local authorities will intervene. There are already many regional incentives available for electric cars, and this appears to increase in the coming years.

“(California) had an EV’s opponent in the state, especially when the federal tax credit was present, and I think we might see a form of this as well.” “I think we will see a lot that happens at the state level more than the federal level, at least in the next three years or so.”

Although the tax credit for electric cars is over, you still have some time for other incentives. the Alternative property to refuel The tax credit, which was modified by the Irish Republican Army, is scheduled to reduce the financial burden of installing EV’s homes on June 30, 2026. It was initially extended until it lasts until December 31, 2032, but Trump spending bill was keen to take care of that as well.