While the incoming Trump administration is expected to end federal tax credits supporting electric vehicle (EV) purchases and leases, yet another poll is showing just how popular these EV rebates remain.
According to a survey by the California-based nonprofit Veloz, 67% of Americans say that the government, be it at the federal, state, or local level, should provide purchase incentives for EVs.
And should the Trump administration end federal incentives, 61% say they want state and local governments to step in and boost their support for EVs.
That’s pretty much what California has already said it will do: Governor Gavin Newsom has announced that should the new administration end federal support, he will revive the state’s EV tax rebates.
Unsurprisingly, behind consumers’ rationale for supporting government incentives lies the issue of costs: When participants in the Veloz poll were asked what might prevent them from buying an EV, the top concern was “cost to buy” for 48.4% of those surveyed.
On the flip side, cost savings on gas is the main reason for choosing an EV for 51.9% of the survey’s participants.
A recent study by J.D. Power also showed that federal tax credits have played a critical role in consumer decisions regarding EVs: 64% of premium brand EV owners and 49% of mass-market EV owners say that incentives were a primary driver of their decision to purchase or lease their EV. More specifically, the J.D. Power survey found Volkswagen, Chevrolet, and Tesla owners were the most heavily influenced by the incentives.
Should government incentives disappear, a key question for American consumers is whether the increasingly intense global competition among manufacturers will continue to exert downward pressure on prices stateside.
Chinese manufacturers, who produce the world’s most affordable EVs, have shelved plans to directly enter the U.S. market after the Biden administration slapped 100% tariffs on China-made EVs last September.
It remains to be seen how the tariffs, combined with the end of government incentives, will impact consumer demand.
