Emerald Valley Electric Vehicle Association Save Money with EVs

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Emerald Valley Electric Vehicle Association

Save Money with Electric Vehicles

5 Ways Electric Vehicles Can Save You Money

While many people develop an interest in electric vehicles because of environmental concerns, and others are intrigued by the superior performance of electric motors over internal combustion engines, the combination of lower operating costs, falling purchase prices, and government incentives may become the reason most individuals, families, and business make the switch to EVs.

$7,500 Federal Tax Credit for New EVs

Up to $7,500 for the purchase of a new electric vehicle or plug-in hybrid vehicle. Beginning January 1, 2024, the credits can be applied at the time of sale so you don't have to wait to file taxes to receive the benefit!

The rules for receiving the credit changed with passage of the Inflation Reduction Act of 2022 and became more complicated. To determine eligibility, follow these steps.

Step 1: Determine if you are eligible at the IRS website. There are income limitations!

Step 2: Determine if the vehicle you are interested in qualifies for a full or partial tax credit at the fueleconomy.gov website. The determination varies depending on where the vehicle is assembled and the sourcing of battery components and critical minerals. There is also an MSRP cap, which varies for trucks, SUVs and vans (max. MSRP of $80,000) and other passenger vehicles (max. MSRP of $55,000).

Important note: if you lease the car, you may be able to avoid many of the restrictions including the income caps and the North American assembly requirement. However, you must negotiate with the dealership and make sure you are getting the savings from the credit worked into your lease terms.

$4,000 Federal Tax Credit for Used EVs

Up to $4,000 for for the purchase of a used electric vehicle or plug-in hybrid vehicle. This tax credit is new starting in 2023. Beginning January 1, 2024, the credits can be applied at the time of sale so you don't have to wait to file taxes to receive the benefit!

To determine eligibility, follow these steps.

Step 1: Determine if you are eligible at the IRS website. There are income limitations for this credit too.

Step 2: On the same IRS page, note the constraints on which vehicles qualify. Some key qualifiers:
* The vehicle price must be less than $25,000
* The vehicle must be purchased from a dealer
* The vehicle must be at least 2 years old

Step 3: Check the list of specific qualifying used vehicles by make and model.

$2,500 State of Oregon Standard Rebate for New EVs

IMPORTANT: In 2024, Oregon Clean Vehicle Rebates are only be available for EVs purchased between April 3 and June 3 because of limited program funds. Vehicles bought outside of this window are not eligible for this rebate.

Details on this program are at the OR Department of Environmental Quality website.

The Standard Rebate is $2,500 for new EVs or $1,500 for a plug-in hybrid vehicle. The vehicle MSRP must be less than $50,000 to qualify. Be sure to check the list of eligible vehicles to make sure your intended vehicle qualifies.

$5,000 State of Oregon Charge Ahead Rebate for New or Used EVs

IMPORTANT: In 2024, Oregon Clean Vehicle Rebates are only available for EVs purchased between April 3 and June 3 because of limited program funds. Vehicles bought outside of this window are not eligible for this rebate.

Details on this program are at the OR Department of Environmental Quality website.

The Charge Ahead rebate program also has an MSRP cap, so any vehicle must be $50,000 or less. In addition, this program is directed at low- and moderate-income households, so there is a maximum income eligibility threshold. Be sure to check the list of eligible vehicles.

$1,000/year* Lower Operating Costs

EVs are much cheaper to fuel are far simpler and less expensive to maintain than comparable internal combustion vehicles. There is no engine oil and thus no oil changes. There are no spark plugs, fan belts, air filters, timing belts, head gaskets, or cylinder heads. Regenerative braking does most of the work stopping a car, so brakes last much longer. The federal Alternative Fuels Data Center provides a cost calculator allowing comparison not only of fuel cost, but also maintenance cost for EV's and conventionally-fueled vehicles.

Alternative Fuels Data Center Vehicle Cost Calculator

* Comparing Hyundai Kona FWD and Hyundai Kona EV using the cost calculator and an assumption of 12,000 miles driven per year. Actual savings will vary depending on the cars compared and use patterns.