· 2 min read
illuminem summarises for you the essential news of the day. Read the full piece on CBS News or enjoy below:
🗞️ Driving the news: A new U.S. bill passed by Congress has ended federal tax incentives for electric vehicles (EVs)
• The bill, which comes into effect on September 30, 2025, removes the $7,500 tax credit for new EVs and the $4,000 credit for used ones, designed to make EVs more affordable
• While the incentives are ending, experts argue that EVs still offer long-term financial benefits, particularly in lower fuel and maintenance costs
🔭 The context: EV tax credits were originally introduced to support the transition to cleaner transportation
• However, with the passing of this new tax and spending bill, many lower- and middle-income buyers may find EVs increasingly out of reach
• Despite this, experts suggest that EVs remain a more affordable and environmentally friendly option when considering long-term savings on fuel and maintenance
🌍 Why it matters for the planet: While the removal of federal tax credits may slow EV adoption, the environmental benefits of electric vehicles remain significant
• EVs have been shown to generate fewer emissions over their lifetime than gasoline-powered cars, even in regions reliant on coal for electricity
• This continued push for EV adoption, even without immediate financial incentives, is essential for achieving long-term climate goals
⏭️ What's next: Consumers have until September 30, 2025, to purchase an EV with the federal tax credit
• Going forward, policymakers may need to reconsider alternative methods to incentivize EV purchases, especially to ensure access for low- and middle-income households
• Additionally, states with their own EV incentives may help bridge the affordability gap for many
💬 One quote: "They're just a really great way to reduce transportation energy cost burden." — Ingrid Malmgren, Senior Policy Director at Plug In America
📈 One stat: The average new EV in the U.S. costs about $9,000 more than the average new gasoline-powered car, and used EVs are typically $2,000 more expensive than their gas counterparts
See on illuminem's Data Hub™ the sustainability performance of key automakers involved in the EV market.
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