Want to slash thousands off your next electric vehicle purchase?
According to USA Today, right now, savvy buyers can stack tax credits from both Joe Biden’s and Donald Trump’s policies to save significant money on new electric vehicles (EVs) before a key deadline looms.
Let’s break down how this works. Biden’s 2022 Inflation Reduction Act offers a credit of up to $7,500 for new plug-in or fuel-cell EVs, provided they’re assembled in North America and bought for personal use. Income limits cap eligibility at $150,000 for individuals and $300,000 for joint filers.
But hurry—this deal won’t last. You’ve got less than three months to claim Biden’s $7,500 credit before it expires on September 30 under Trump’s incoming policy.
Once that deadline hits, Trump’s “Big Beautiful Bill” takes over. It scraps Biden’s credit and introduces a new annual tax credit of up to $10,000 on loan interest for new vehicles under 14,000 pounds, assembled in the U.S. This applies to purchases made from 2025 through 2028.
Here’s the kicker: combining both credits over the next four years could mean massive savings. Think of it as a rare overlap where government incentives align to pad your wallet—if you act fast.
Not everyone can cash in, though. Trump’s credit phases out for individuals earning between $100,000 and $150,000, or joint filers between $200,000 and $250,000. It also excludes fleet purchases, commercial vehicles, and leasing deals.
Compare that to Biden’s rules, which are slightly more generous on income but still restrictive. If you’re over the threshold, you’re out of luck on either plan. Plan your purchase with these caps in mind.
Now, let’s talk numbers. The average new EV costs $57,734, per Kelley Blue Book, and even with Biden’s $7,500 credit, you’re still paying a $1,500 premium over a gas-powered car. That’s a bitter pill for frugal buyers.
But here’s where EVs shine: fuel costs. Over five years, gas vehicles rack up $9,490 in fuel expenses, while EVs cost just $4,295—a savings of over $5,000. That’s real money back in your pocket.
Used EVs are another angle, averaging $20,000 less than new models. Biden’s policy offers a $4,000 credit for used EVs, though they don’t qualify for Trump’s loan interest credit. It’s a decent fallback if new cars are out of reach.
Still, new EVs with dual credits are the sweet spot. Stack Biden’s $7,500 now with Trump’s potential $10,000 annual credit later, and you’re looking at a rare chance to game the system—legally.
So, what’s your move? If you’re in the market, buy a qualifying new EV before September 30 to lock in Biden’s credit. Check the assembly location and your income to ensure eligibility.
Then, plan for 2025-2028 purchases under Trump’s bill if you qualify. Use that loan interest credit to offset costs on a U.S.-made vehicle. It’s a strategic play for wealth-builders who hate overpaying.