As EV Tax Credits Come to an End, Here’s How Much People Saved
A Lending Tree analysis of tax returns shows how much filers saved on new and used electric vehicles under a program that ends on September 30.
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An analysis of 2023 tax returns shows how much U.S. car buyers saved on the purchase of new and used electrified vehicles that year.
Californians benefited the most in total and per capita.
The $7500 federal clean-vehicle credit expires after September 30, so it’s now or never if you want to take advantage.
With the federal clean-vehicle tax credit program just about to expire (you have until September 30 to lock in a deal), it’s time to reflect on how they helped consumers transition to electrified cars and trucks. Thanks to an analysis by the financial website Lending Tree, we now have a better idea of how much Americans benefited from these tax breaks, and what the industry will be losing once they’re gone.
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Lending Tree looked at tax-year 2023 return data and totaled up the credits for purchases of new and used electric and plug-in hybrid vehicles by state. The analysis yielded some big numbers. The largest: Americans got more than $3.3 billion back on their taxes that year from the credits.
California Leads, Texas in Second
Not surprisingly, the most populous state and one that’s very friendly to EVs—California—accounted for the largest share of both the new and used clean-vehicle credits in 2023. Residents there nabbed about a third of the total, $1.1 billion, across 163,900 new and used models. Next was Texas, with 38,870 claims totaling about $267 million. Washington State had the second most used credits claimed, with 6540 adding up to $5.7 million in money back.
On a per-capita basis, California was still the leader, with 857 claims per 100,000 returns. Next up was Washington, with 571 per 100,000 claims.
Across the U.S., the average new-vehicle credit was $6709 of the maximum $7500, while credits on used vehicles averaged $3392 of the $4000 max. You can see the full results of the analysis at Lending Tree.
Leases Not Included
Even more citizens (and some businesses) benefited from the EV credits. Because they’re based on tax returns, Lending Tree’s numbers only account for people who purchased their EVs and filed for the credit. The other way to get money off the price of a new EV or PHEV is through leasing. This route also lacked the restrictions put into place in recent years that stipulated battery material sources and assembly in the U.S. to claim the full credit; no such requirements existed for the so-called leasing loophole, so someone leasing, say, a made-in-Italy Fiat 500e could (and did) get the benefit as long as the leasing company passed it on to them.
PSA: Act Now, Meaning Right This Minute
Remember, you only have a couple of days to grab a discount on an electrified vehicle courtesy of the federal government. You don’t have to take delivery of the vehicle by that point, but you do have to have a signed deal. Start with our own Marketplace listings
right here on C/D, and if you need some inspiration, check out our ranking of all EVs as well as the top PHEVs. Happy panic shopping.
More on EVs
Federal EV Tax Credit Stays Alive a Little Longer
Future EVs: Every Electric Vehicle Coming Soon
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David Gluckman
Contributing Editor
Ever since David was a wee Car and Driver intern, he has kept a spreadsheet listing all the vehicles he’s driven and tested. David really likes spreadsheets. He can parallel-park a school bus and once drove a Lincoln Town Car 63 mph in reverse. After taking a break from journalism to work on autonomous vehicles, he’s back writing for this and other automotive publications. When David’s not searching for the perfect used car, you can find him sampling the latest in gimmicky, limited-edition foodstuffs.