If you’ve been thinking about buying an electric vehicle but the price tag seems a little too daunting, one TikToker is here to help with an explanation of the tax credit available to purchasers of new and used EVs.
@milansinghhh 🚗 Did you know that the government is offering rebates for new EV and used EV buyers? If you are in the market for a new vehicle, I recommend considering an electric vehicle. The government is offering $80B in new rebates for EVs and green energy at home. Buyers of new EVs will get a $7,500 tax credit applied at the point of purchase (making it an instant rebate) or a$4,500 tax credit for the purchase of a used EV #sponsored #TakingADeepDive #moneytok #tesla #ev #finance #personalfinance #money #taxes #government #taxcredit ♬ original sound – Milan 🤑
Finance content creator Milan Singh explains: “I got $9,000 in grants and rebates last year to buy my electric vehicle, but the government just signed $80 billion in new rebates for electric vehicles and green energy through the Inflation Reduction Act.”
This means that buyers of new electric vehicles can get a tax rebate of up to $7,500 by buying a new electric vehicle. Buyers of used electric vehicles can also get a tax rebate of up to $4,500.
In order to qualify, the electric vehicle must have a battery that was sourced and manufactured in the United States. Luckily, companies like Toyota are massively ramping up their electric car production in the U.S. in order to meet demand.
Electric cars have less of a negative impact on the environment than traditional, gas-powered ones. They emit fewer harmful gases and air pollutants and decrease the need for fossil fuels, which is why the government is explicitly trying to motivate more people to make the switch through the Inflation Reduction Act and other tax credits.
And luckily for consumers, the days of only one electric vehicle on the market are long gone — companies like Chevy, Nissan, Mini Cooper, Mazda, and Hyundai all have somewhat reasonably affordable (especially with that electric vehicle rebate) electric models on the market.
Not only that, but the infrastructure is quickly catching up. For consumers worried about getting stranded somewhere without a charge, electric vehicle charging stations are popping up all over, making that a concern of the past.