Time is running out for electric vehicle (EV) buyers to take advantage of the major federal tax credit expiring at the end of September.
Yahoo Finance Senior Reporter Pras Subramanian joins Market Catalysts to explain which EV models still qualify and why now may be the best time to buy or lease.
To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here.
00:00 Speaker A
So Pros, we have this fast approaching deadline for potential EV buyers, and a lot of folks don't really know how quickly this is coming.
00:09 Speaker B
I mean, look, you need to act now if you want an EV, right? So Trump's budget bill sunsets at federal EV tax credit of $7,500 for new vehicles and $4,000 credit for used vehicles starting on September 30th. So we literal basically a month and a half year. Um, you know, while smaller state incentives are still there, the federal credit was sort of the main impetus driving the sale of EVs in America. Uh it first began the Obama administration in 2008 and Biden expanded during his term, right, to include both the new and used uh EVs. And in addition to that, there's a point of sale a situation where the actual credit actually gets gets gets deducted right when you buy as opposed to waiting when you file your taxes. So uh it's just it's just the the best time to buy is right now and and if you want to buy it and there's also the lease loophole, right? So lease loophole allows for you to lease any EV, doesn't have to be American, doesn't have to be doesn't have to be uh under a certain uh price or or conditional upon your your income level. You can lease any EV, you get that $7,500 deducted from your lease payment. So look, it's the time if you want an EV, now's the time to get one.
00:58 Speaker A
All right. Yeah, and like you're saying, you can save some money there. What are some of the tax credit eligible EV models on sale right now?
01:03 Speaker B
I mean, so for purchase, you're going to be looking at a lot of the American brands or cars that are made in America, uh which is beyond, you know, the Cadillac uh uh the Cadillac um uh lyric and cars like that, but also uh the Honda prologue, which is made by GM uh in the US. That car also is is available for the tax rate for the F-150 Lightnings. And of course, how can we forget Tesla, Model Y, Model 3, Cybertruck, uh all those vehicles also made in America. They are they are eligible for that loophole and I'm sorry, for that tax credit. If you go to the Tesla website right now, they have a big banner that says, "Act now to get get your Tesla before this goes away." So there, you know, manufacturers are sort of talking about it. There's a bunch of inventory still available. I imagine by the end of September, it's going to be kind of dwindling. So now's your best time to get the best option in terms of availability.
