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Does the U.S. subsidize electric cars?
I’ve heard that in other countries, the government will subsidize electric cars in order to sway people toward buying them. Does the U.S. subsidize our EVs, or is that something that doesn’t happen in the states?
Jason Crosby · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
The only subsidy for EVs that the U.S. government offers is an up to $7,500 tax credit that allows EV purchasers to write off part of what they owe in taxes. It’s a great incentive for new vehicle owners to shop electric instead of gas, but
EV sales
are still lagging behind traditional vehicles for a few key reasons. The first is that it’s simply more expensive to purchase an EV—they can be $5,000-$10,000 more than the same gas-powered model, and insurance rates are higher for EVs, too. This is due to the cost of fixing them—with advanced electrical and computer systems, EVs almost always require a trip to the dealership rather than a local handyman’s assistance.
The state where drivers are likely to get the best deal on shopping for a new EV is New York. New York EV owners can cash in on the federal government’s tax credits, and utilize the up to
$2,000 rebate
that the state offers drivers who buy or lease a new or used EV. With the largest population in the U.S., NY is working to ensure that it can meet carbon-neutral deadlines well in advance—and cut back on air and noise pollution that runs rampant in some of the city’s most densely-populated areas. EVs are expensive—make sure your car insurance isn’t.
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is the easiest and most effective way to find a car insurance policy that is customized for you.After providing you with a comprehensive cross-analysis of the best policies across providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to.
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