End of tax incentive could put brakes on electric vehicle sales

Federal tax credits on both new and used electric vehicles will expire Sept. 30 — about seven years earlier than initially anticipated — after President Donald Trump’s One Big Beautiful Bill Act was passed in July.

Under the Inflation Reduction Act of 2022, buyers of new, qualifying EVs could be eligible for up to $7,500 in federal income tax credits, and preowned EVs that qualify could receive up to $4,000.

The bank or the automaker’s finance company can take a $7,500 tax credit for EV leases but may discount your lease accordingly, according to Edmunds, a car shopping website.

The impending elimination of the tax credit hasn’t exactly sent droves of customers into area dealerships looking to buy an EV.

“We haven’t really seen anybody running in yet, which is surprising because we thought we would,” said Amanda Ryan, a sales consultant for Sylvester Chevrolet in Blakely. “When they first came out with the tax credit, we had a rush of people. I don’t know if it’s just that people aren’t in the market or if people who were going to rush for it already have them. I would say, if anything, maybe next month we’ll get a lot of people coming in for them, but it’s hard to speculate because of how inventory levels, interest rates and all other kinds of stuff play into it as well.”

Charles McFadden, general manager of Audi Wyoming Valley in Plains Twp., recently noticed a small bump in electric vehicle interest at the Luzerne County dealership.

“EV sales have never been all that strong in our area, but there is a slight uptick in anticipation and a lot of incentives from the manufacturer to help beat that deadline,” he said.

McFadden fears sales will plummet once the tax credit expires at the end of next month.

“I believe it will go to just about zero,” he said. “Our manufacturer is taking a very conservative view of the short-term future of EVs.”

McFadden believes several things need to happen for electric vehicle sales to pick up in Northeast Pennsylvania, starting with better incentives.

“Other states give very good rebates for EVs; our state doesn’t give any,” he said. “I just got back from a meeting in Seattle and the Audi dealer that has about 40% EV sales — that’s hugely different than around here.”

He also feels the region needs to…