The latest federal program to encourage electric vehicle purchases kicked off with the new year, offering the single largest financial boost available to buyers — a $7,500 tax credit — in hopes of cutting the use of fossil fuels.
The new program makes some Tesla vehicles eligible for credits once again and guarantees availability of the money until 2032. And in California, buyers can stack the federal credit with a state credit of up to $7,000, depending on eligibility. But buyers will be subject to income limits and manufacturers will have to contend with new federal restrictions on where the components of qualifying cars can be made, complicating the process for many.
Still, Brian Moody, executive editor of AutoTrader, said the credits should help broaden electric vehicle sales beyond the “early adopters” who have bought EVs even though they typically cost more than gas vehicles. “You’ve removed the barrier of price for some people,” Moody said.
