Is the government considering extending the electric car tax credit?

I have heard that the Federal Tax Credit in the US only applies until a certain limit and then it slowly fades away. With the large push towards EVs, is the government considering extending the electric car tax credit to help with affordability?

Find out if you’re getting ripped off on your car insurance in less than two minutes.
No spam · No long forms · No fees
Find savings (100% Free)
rating white
3.5k Ratings
Answer provided by
Marlee John
Answered on Jul 27, 2022
This is a good question and one we get a lot considering the rising cost of living. Some companies are trying to encourage the government to lift the cap on the tax credit, but whether or not the government will listen is still uncertain.
The US Federal Tax Credit gives buyers up to $7,500 tax credit on the purchase of a new EV. However, this only applies if the company has not sold 200,000 eligible units. After that limit the available credit cuts in half and then half again until it’s unavailable.
Both Tesla and GM Motors vehicles have surpassed the limit for the tax credit, with Tesla reaching the cap back in 2019.
A recent article reported that companies like GM and Ford are trying to lift the credit cap. Companies suggest that the EV market is still too young for major incentives to be fading out and four main companies pledge $170 billion in infrastructure funding in exchange for an extension.
While there has yet to be a formal response by the government, there is still hope.
The time for savings is now, especially for car insurance. Jerry is the number one car insurance comparison app that can help you compare insurance quotes across 50 states!
On average, Jerry users save over $800 per year on car insurance!

Here to save on car and home insurance? Great, you do that. We’ll do everything else.

Sign up in under a minute.
No need to fill out forms or shop around. Sign up in 45 seconds to start saving. Jerry does the rest.
Jerry collects and analyzes your current coverage.
Say hello to Jerry, your new insurance agent. We’ll contact your insurance company, review your current plan, then find the coverage that fits your needs and saves you money.
Get the best options before your renewal.
Jerry does all the picky, busy work by comparing prices and coverage from more than 50+ insurance companies. We compare what we find to your current policy and offer you the three best options before every renewal.

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free