EV tax credits could vanish under Trump. Is now the time to buy?

California plans to blunt any GOP efforts to scrap U.S. tax rebates for electric vehicles. But with uncertainty ahead, experts say current savings may not last.

California is already looking to head off any moves by President-elect Donald Trump to slash electric vehicle subsidies — the latest sign of uncertainty for EVs next year that some analysts say prospective buyers should think about now.

“The road ahead in 2025 is looking pretty bumpy for EVs,” said Jay Turner, an environmental studies professor at Wellesley College who studies the market. He called California Gov. Gavin Newsom’s announcement Monday that the state would fill the gap if the incoming administration scraps existing federal EV tax rebates “good news for Californians.”

Some states, including Colorado and Massachusetts, already offer substantial support that EV buyers can combine with those on offer from the federal government, Turner noted. But after California’s own incentives expired last year, the state’s new ultimatum would effectively replace the tax credits (of $7,500 for new EVs and up to $4,000 for used ones) that the Biden administration introduced under the Inflation Reduction Act, should a Republican-controlled White House and Congress quash that aid.

“We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute,” Newsom, a Democrat, said in a statement Monday.

Trump has criticized tough emissions standards and is likely to renew a fight with California over the matter. He also indicated on the campaign trail that he’d consider eliminating the EV rebates, saying, “Tax credits and tax incentives are not generally a very good thing.”

https://www.nbcnews.com/business/autos/ev-tax-credits-vanish-trump-now-time-buy-rcna181635

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