Proposed new EV tax credit would be $12,500 for union-made cars - buy an EV now or wait to see if it passes?
I have been shopping for an EV and now I keep seeing a proposal for a new federal tax credit: up to $12,500 for union-made vehicles, with the old 200,000-vehicle per manufacturer cap removed. Ford and GM back it, Tesla and Toyota are lobbying against it, and nobody seems sure it becomes law. My current car still runs, so I can wait a few months, but I also do not want to miss today's credits if the proposal dies. For anyone who has tracked EV incentives before: do you buy now on the credit that exists today, or wait for a bigger credit that may never arrive?
1 answer
- Wait for the bill text, buy on today's price
Do not pay a markup for a credit that does not exist yet. A proposal is not a law, and dealers know how to price in a headline $12,500 the second it looks likely. Buy only if the deal works on today's credit and today's out-the-door price; if the new credit passes later, that is a bonus you did not overpay for.