CarMax, Carvana Back Used EV Tax Credit, Pledge Major Support

June 11, 2024
Fact Checked

In a significant boost to the electric vehicle (EV) market, major pre-owned vehicle retailers CarMax and Carvana have announced their support for the 25E Clean Vehicle Tax Credit. 

This tax credit offers individuals earning under $75,000 annually or married couples filing jointly with an income under $150,000 up to $4,000 off eligible electric vehicles.

The announcement came during a White House event attended by leaders from the pre-owned vehicle sales industry, clean car advocates, and senior administration officials, including John Podesta, Senior Advisor to the President for International Climate Policy.

The 25E tax credit has already significantly impacted the industry, with over 13,000 dealerships registered to offer the credit at the point of sale, saving buyers over $850 million in 2024 alone. 

Notably, 90% of eligible EV buyers have opted for immediate cash savings rather than waiting until tax season.

electric vehicle

Several private-sector companies have committed to supporting the tax credit and enhancing the EV buying experience. Carvana plans to integrate the tax credit into its e-commerce platform by the summer of 2024, while CarMax will feature a badge identifying eligible vehicles by January 1, 2025. 

Other companies, such as Recharged, Incentivize, and Recurrent, have pledged to improve EV solutions, expand partnerships, and provide vehicle eligibility information.

Organizations like ZETA, Maritz Automotive Solutions, Sierra Club, Plug In America, and the Environmental Defense Fund have also committed to developing educational materials, raising awareness, and training companies on fleet electrification.

Despite progress, infrastructure challenges remain a significant barrier to widespread EV adoption, particularly in rural and underserved urban areas. Fewer charging stations continue to hinder the growth of the EV market.

However, federal and state investments, private company innovations, and partnerships with utility companies aim to address these issues by expanding and enhancing the charging network.

As industry leaders and policymakers continue to work together to overcome infrastructure barriers, the future of electric vehicles looks promising. The support from major players like CarMax and Carvana, along with the 25E Clean Vehicle Tax Credit, is expected to accelerate the adoption of EVs and contribute to a cleaner, more sustainable transportation future.


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