The article discusses the importance of three federal electric vehicle tax credits under threat from House Republicans, emphasizing the implications of ending the leasing credit (45W). The established $7,500 rebate (30D) and newer $4,000 secondhand EV incentive (25E) play substantial roles in fostering EV adoption. Notably, leasing has surged, with rates increasing from 11.5% in 2022 to over 45% in 2024, underscoring its significance in driving record sales of battery-powered vehicles. Eliminating these credits could jeopardize the future growth of America's EV market.
"This dramatic rise highlights how crucial the leasing credit has been in promoting EV adoption," Stephanie Valdez Streaty, Cox's director of industry insights, said in an email.
Just 11.5% of the new EVs that changed hands in 2022 were leased, according to data from Cox Automotive. In 2024, the EV leasing rate had jumped to over 45%âmore than double the industry-wide percentage.
If it goes away as one House committee has proposed, so does a primary fuel source driving America's transition to EVs.
Through a wrinkle known as the 'leasing loophole,' this sleepy-sounding policy has kicked off an epic EV-leasing boom.
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