Why should only new EVs be eligible for free money?
Depending on the automaker and which state you reside in, $7,500 federal tax credits are available on brand-new all-electric vehicles. Tesla and GM, for example, have run out of those credits though there is a proposal to reinstate them. But EVs like the Tesla Model S, Chevy Bolt, and Nissan Leaf have been on the market for several years now and owners are now trading them in for something new.
With a growing number of used EVs out there, wouldn't it make sense for second-hand buyers to also enjoy some financial perks, courtesy of the feds? Absolutely.
The Affordable EVs for Working Families Act was introduced last week by California lawmakers Senator Dianne Feinstein and Representative Jimmy Gomez and has nine co-sponsors. If passed in its current form, it would incentivize the purchase of a used EV or PHEV with up to $2,500 in tax rebates.
"This bill would help make electric cars affordable to a larger group of people and move us closer to a point where high-pollution gas-powered cars are off the roads," Sen. Feinstein said. The bill further proposes the tax credit will only be given to EVs that are at least two years old and cost less than $25,000.
In addition, the credit will be phased out for individuals who earn over $75,000 annually and $150,000 for couples who file jointly. The aim is to help low- and middle-income households buy EVs they otherwise couldn't afford. It's hard to say whether the bill will pass because all lawmakers who've signed their names to it are Democrats.
Getting bipartisan support on just about anything these days is rare, though this is something Republicans could find appealing. Dealerships are businesses and they're bound (if not already) to see an increased number of used EVs on their lots. Incentivizing them with a couple of thousand dollars or so is smart business.