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IRS data reveals government policy saves Americans $600 million on EV purchases in just 3 months — here's why this matters

The benefits go beyond just monetary savings.

The benefits go beyond just monetary savings.

Photo Credit: iStock

The U.S. Department of the Treasury has released promising data revealing the positive impact the Inflation Reduction Act is having on commuters' wallets over the first three months of 2024.

According to the USDT, customers who have purchased qualified electric vehicles from registered dealers have recouped over $600 million thanks to a time-of-sale feature that went into effect on Jan. 1. 

What's more, the savings keep coming. The average EV driver is projected to save as much as $14,500 over 15 years compared to the average gas-powered commuter, according to data cited from the U.S. Department of Energy's National Renewable Energy Laboratory. 

Charging an EV is not only staggeringly less expensive than fueling up at the gas pump. Drivers also have less to deal with when it comes to maintenance. 

It may not be surprising that Tesla leads the pack in that regard. Consumer Reports' 2023 Annual Auto Surveys discovered that the automaker's vehicles have the lowest repair and maintenance costs — even compared to luxury brands like Porsche and Mercedes-Benz.

The rate of EV sales in the U.S. has slowed slightly to start the year, according to Cox Automotive's Kelley Blue Book. However, IRA initiatives are seemingly helping to keep the technology on people's radars. Bloomberg analysis cited by the USDT reveals that EV sales are projected to grow by 30% in 2024. 

"These tax credits are supporting the market for clean vehicles in the U.S. with dramatic sales increases in 2023 and laying the foundation for continuous and increased uptake in the years to come," the USDT wrote in its report. 

The benefits go beyond just monetary savings, as taking advantage of the IRA to get more gas-guzzlers off the road would contribute to cleaner, healthier air quality. 

While scientists have made advancements that might lead to even more eco-friendly EV battery production, mining for traditional battery materials is less polluting than harvesting dirty fuels. The average gas-guzzling vehicle also releases more than 10,000 pounds of carbon pollution every year, whereas EVs produce zero tailpipe pollution. 

In its report, the USDT provided more resources for consumers to explore the benefits of the IRA, including items from the Internal Revenue Service. The Cool Down's guide also has information on other upgrades available through the IRA that can save consumers thousands of dollars, from heat pumps to solar panels

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