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Energy Tomorrow Blog

Study: Electric Vehicle Tax Credit is High Cost, Low Reward

electric vehicles  subsidies  consumers  tax payer 

Scott Lauermann

Scott Lauermann
Posted May 21, 2019

Having already shelled out $2.2 billion for the federal tax credit for purchases of electric vehicles (EV) between 2011 and 2017, U.S. taxpayers could see that cost increase seven-fold over the next decade – while yielding negligible results, according to a new study.

Coupled with the fact that upper-income households have bought most of the EVs sold in the U.S. (and benefited from these tax subsidies), the report continues to raise questions about the EV subsidy and legislation that would expand it.

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