Automakers are working on enticing more drivers to switch to electric vehicles by cutting down their prices. The price of new electric vehicles has been down nearly 20% within the past year, this market shift makes EVs more affordable for the consumers. Consumers can also take advantage of federal tax credits for qualifying electric vehicles. Owners can apply for these tax credits to offset the costs of EVs to lower the prices.

There are several Ford and Tesla models that are among the most affordable electric vehicles. Tesla models 3, Y, S, and X all received price cuts this year along with Ford F-150 Lightning and Ford Mustang Mach-E. Several EVs make the list of biggest price cuts but only after an incentive or rebate is deducted. These models include Hyundai Ioniq 6, Kia EV6, and the Audi e-tron GT.

The eligibility for EV tax credits depends on when the EV was made, where its parts were built, and how much the vehicle costs overall. The Biden Administration allocated the tax credits towards vehicles that have parts assembled in the United States, built within a certain time, and does not exceed a specific market price depending on the vehicle. The price of the tax credits is a sliding scale of $2,500 to $7,500 based on how it meets the various qualifications. This was created to stimulate the auto-industry to use factories based in the United States for assembly. Not all vehicles qualify for these tax credits and tax credits need to be applied for through the IRS.

Click here to read the full article, originally published July 19, 2023, by Money.com