U.S. Treasury Department Reveals Over $1 Billion in Immediate Savings for Consumers on Electric Vehicle Purchases

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Total Consumer Savings Reach $3.2 Billion

The U.S. Department of the Treasury and IRS have revealed that consumers have collectively saved over $1 billion on the purchase of more than 150,000 clean vehicles since January 1, 2024. This milestone highlights the Biden-Harris Administration’s commitment to reducing transportation costs for Americans.

Annual Savings of $1,750 Per Consumer

Consumers are saving an average of $1,750 annually on fuel and maintenance costs, translating to $21,000 in discounted savings over a typical 15-year vehicle lifespan compared to gasoline vehicles. The upfront discount has resulted in approximately $262 million in annual savings for consumers.

Growth in Clean Vehicle Industry

The clean vehicle industry has experienced significant growth following the enactment of President Biden’s Inflation Reduction Act. In 2023, the U.S. saw a record 1.5 million passenger clean vehicle sales, representing a 50% increase from the previous year.

Immediate Benefits for Consumers

The Inflation Reduction Act facilitated the transfer of clean vehicle tax credits to registered dealers, providing consumers with substantial upfront discounts. This mechanism has enabled consumers to save over $1 billion at the point of sale, benefitting both new and used clean vehicle buyers.

Cost Savings Analysis

An analysis by Energy Innovation Policy & Technology estimates that electric vehicle owners will save between $18,000 to $24,000 over the lifespan of their vehicles compared to gasoline vehicle owners. This significant cost savings is primarily driven by lower fuel and maintenance expenses for electric vehicles.

Learn More About Clean Vehicle tax credits

For additional information on the Inflation Reduction Act‘s clean vehicle tax credits, visit the official Treasury Department website.

Read More of this Story at cleantechnica.com – 2024-06-13 19:26:44

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