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“Big, beautiful bill” ends tax breaks for electric vehicles. Here’s what to know.
In a significant move, the recent passed budget bill has brought an end to federal tax incentives for electric vehicle (EV) buyers. The news may come as a shock to those considering making the switch to cleaner transportation. However, experts advise that there are still compelling financial reasons to invest in these vehicles despite the loss of this incentive.
While the federal tax credits for EVs have come to an end, there are other benefits that make them an attractive option. For instance, electric vehicles require significantly less maintenance compared to traditional gas-powered cars. In fact, they typically need fewer moving parts and less frequent servicing, resulting in substantial long-term cost savings.
According to a study published in the academic journal Joule in 2020, the average EV owner can save as much as $7,700 over a 15-year period by choosing an electric vehicle. These savings are attributed to the reduced need for fuel costs, which are significantly lower when driving an EV.
Furthermore, new research has shown that even in areas where electricity is generated using coal-fired power plants, electric vehicles still produce less carbon dioxide emissions compared to their gas-powered counterparts. This disparity increases as the distance driven increases. In fact, a 2023 analysis by Yale Climate Connections found that an EV in West Virginia, one of the most coal-reliant states, would still be responsible for 31% fewer CO2 emissions.
According to Peter Slowik, U.S. Passenger Vehicles Lead for the International Council on Clean Transportation, this disparity is due to the fact that electric vehicles are inherently more efficient at converting energy into forward motion. He emphasized that even in areas where coal-fired power plants dominate the electricity generation mix, an EV still outperforms a gas-powered vehicle.
While the loss of federal tax incentives may be disconcerting news for some, experts advise that there are still compelling financial and environmental reasons to invest in electric vehicles.
Source: www.cbsnews.com
