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The new year is rapidly approaching and with it a host of new vehicles begging to be driven are sitting in dealer lots waiting to wow shoppers. When it comes to new cars, those shoppers often expect more for less as new models hit the showroom, but that wont be the case for electric vehicles like the Nissan Leaf (pictured above).
Next year the government is removing three of the four subsidies available to consumers as incentives to adopt the new technology. The fourth, and arguably most important, will remain in the coming year. A total of $8,500 in tax incentives will get the ax as the ball drops in Times Square, which represents more than half of the total $16,000 in incentives offered this year. Consumers buying EVs next year won’t enjoy this year’s $1,000 maximum to install a home charging station, $2,500 maximum for two- or three-wheeled EVs with 2.5-kWh batteries or larger and the $4,000 maximum for converting either a hybrid to plug-in or a regular ICE to EV power.
People purchasing EVs will still be eligible to receive up to $7,500 in tax credits for buying a new plug-in vehicle, though the subsidy depends on the size of the battery in the vehicle. These incentives are meant to boost the number of EVs sold and will be phased out on a per-manufacturer basis once the individual automakers sell more than 200,000 plug-ins.
It might be good to act before the new year if you’ve been planning on cashing in with those incentives, but don’t worry about losing out on the $7,500 credit that will remain. The 200,000 vehicle figure isn’t likely to be hit any time soon thanks to low selection and relatively high prices for EVs with or without bonuses.