- Americans have claimed more than $1 billion in upfront clean vehicle tax credits.
- The funds have helped consumers to purchase more than 150,000 electric, fuel cell, or plug-in hybrid vehicles.
- More than 90% of new car buyers opt for the upfront credit.
If you’ve paid your taxes, pat yourself on the back as you’ve helped someone buy an electric vehicle. A lot of people actually as the U.S. Department of the Treasury and the Internal Revenue Service (IRS) have announced more than $1 billion has been handed out since January 1.
This has aided in the purchase of more than 150,000 clean vehicles, which got the tax credit upfront. The government said these consumers can expect to save approximately $1,750 annually on fuel and maintenance costs and $21,000 over the typical 15-year lifespan of a vehicle. Of course, that’s assuming the battery doesn’t crap out and cost $20,000 or more to replace.
More: New EV Tax Credit Changes Could Make More Vehicles Eligible
While consumers are turning on EVs, the government is looking through rose colored glasses and noted around 1.5 million electric, fuel cell, or plug-in hybrid vehicles were sold in the United States last year. The Treasury says that’s the “highest annual total ever” and a “50 percent year-over-year increase from 2022.”
Since January 1, upfront credits have been used to purchase more than 125,000 new vehicles and more than 25,000 used vehicles. The credit for the former is up to $7,500 while used cars are eligible for up to $4,000.
The government notes upfront credits have been a hit with consumers as “more than 90 percent of new clean vehicle transactions and approximately 80 percent of used clean vehicle transactions” have them applied at the dealership. The remainder do it the old fashioned way, when they file their taxes.
Getting back to savings, the government said for cars that have both electric and gas-powered versions, the average gasoline cost per 1,000 miles (1,609 km) is $120 while the electric version costs an average of $60 to travel the same distance. EVs also have 40 percent lower maintenance costs than their gas-powered counterparts.
