Accounting
US car sales get year-end boost from Trump’s threat to end EV tax credits
President-elect Donald Trump’s threat to eliminate tax credits for electric vehicles likely gave plug-in cars a much-needed boost after a disappointing year, part of a broader surge in auto sales at the end of the year.
EV sales grew 12% in the fourth quarter of 2024, pushing the full-year total to a record 1.3 million, according to forecasts from researcher Cox Automotive. That’s up from an 8% growth rate in the previous quarter. Plug-in models make up
A strong fourth quarter also helped push total car sales up from the year prior. The annualized rate for 2024 rose to 15.9 million cars, based on the average forecast of four researchers, up from 15.5 million a year ago.
This EV surge isn’t expected to last into 2025. The results of the U.S. presidential election encouraged buyers holding out for deals to make purchases before policy changes championed by Trump make electric options even more expensive next year.
Only a quarter of new-car shoppers are considering an EV for their next purchase, down two percentage points from a year ago, according to JD Power.
“Threats and worries” contributed to a “sense of urgency to buying,” Jonathan Smoke, Cox’s chief economist, said on a December call with reporters. “That’s true in overall purchase activity, and it’s also very much true to the EV story.”
Trump made repealing federal policies meant to boost U.S. EV sales a key part of his campaign,
As for the overall new car market, lower interest rates, rising manufacturer incentives and fading anxiety around the election drew more buyers, prompting analysts to raise full-year sales forecasts. Earlier in the year, inflation and a cyberattack on car dealerships had dimmed the sales outlook for 2024.
General Motors Co. was likely the the biggest automaker in the U.S. by sales last year, delivering 2.7 million cars, followed by Toyota Motor Corp., Ford Motor Co., Hyundai Motor Co. and Honda Motor Co., according to Cox.
Stellantis NV, which has been plagued by product launch delays and bloated inventories that led to the
For EVs, Tesla Inc. is still the sales leader by far, but experienced its
Affordability is keeping car sales of all kinds below pre-pandemic levels, according to Jeff Schuster, GlobalData’s vice president of automotive research. The average retail transaction price for new vehicles is trending toward $46,258, according to JD Power. For EVs, high costs are the biggest stumbling block for potential buyers, followed by insufficient charging infrastructure.
On average, EV buyers got a $5,600 rebate per car with the current tax credit, JD Power figures show. Without that kind of incentive, demand could plunge as much as 27%,
While some carmakers, like GM and Hyundai, have pledged to push ahead with EV offerings regardless of policy changes, others have delayed EV plans to prioritize hybrids, which saw outsized growth in 2024. Stellantis said last month it would delay
Automakers that take that “basket approach” will come out on top in 2025, GlobalData’s Schuster said. “If you have a full lineup of options, that’s who wins.”
The Treasury Department and the Internal Revenue Service released
The tax credits, also known as the “technology-neutral credits,” aim to reduce energy costs and meet growing demand created by major investments in the U.S. economy.
To receive the full value of the credits, taxpayers need to meet standards for paying prevailing wages and employing registered apprentices, helping ensure more clean energy jobs are good-paying jobs, and growing career opportunities for workers in the clean energy sector. The technology-neutral Clean Electricity Production and Investment Tax Credits are also eligible for bonus credits related to siting projects in energy communities and meeting certain standards for using domestic content.
According to an
The final rules issued Tuesday provide more clarity and certainty about which clean electricity zero-emissions technologies qualify for the credits, including wind, solar, hydropower, marine and hydrokinetic, geothermal, nuclear, and certain waste energy recovery property. The Treasury and the IRS expect to soon release the first Annual Table confirming this list of qualifying technologies. The final rules also include guidance to clarify how combustion and gasification technologies can qualify in the future, including on how lifecycle analysis assessments compliant with the statute will be conducted.
“The final rules issued today will help ensure America’s clean energy investment boom continues – driving down utility costs for American families and small businesses, creating good-paying construction jobs, and strengthening energy security by making the U.S. more resistant to price shocks,” said Treasury Secretary Janet L. Yellen in a statement.
However, the new rules face pushback from the incoming Trump administration, with President-elect Trump saying Tuesday, “We’re going to try and have a policy where no windmills are being built.”
Audit and accounting data solutions provider
Cloud-based LeaseJava is designed to help audit firms, corporations and non-profit/government entities to manage their leases and ensure compliance with accounting standards such as ASC 842, IFRS 16 and GASB 87. Specifically, it supports lease modifications without the need to create a new lease, as modifications can easily be added to existing leases. The solution is made to handle complex and nuanced scenarios, computing details down to the daily level and aggregating them to manage intricate situations. Export functionality is configurable, allowing the user to select and group leases accurately. Additionally, LeaseJava offers weighted average computation and a bulk import feature to enhance ease of use.
A spokesperson with Caseware said current customers of LeaseJava will still be able to use the software they’ve been using. Meanwhile, Caseware customers will be able to purchase it in the coming months. Caseware is in the process of evaluating continued application of the LeaseJava branding relative to future product plans.
This acquisition is an example of Caseware’s continued commitment to investing in solutions that will improve the accountant’s experience while providing integrated workflow management and analytics, according to the spokesperson.
“This acquisition underscores Caseware’s commitment to enhancing its connected ecosystem, artificial intelligence strategy and the provision of an even more comprehensive suite of trusted, innovative solutions. Customers can look forward to a seamless experience and the continued evolution of the Caseware family of products, enabling them to effortlessly manage their workflows and do their jobs better than ever before,” said David Osborne, Caseware CEO.
LeaseJava is headed by Michael Cheng, who is also a partner at Frazier and Deeter LLC. Prior to that, he worked directly with the FASB as a senior project manager. He is also a current member of the FASB’s Private Company Council, one year into his three-year term.
“I co-developed LeaseJava to solve the issues I was experiencing with lease computations along with Venkat Avasarala, Partner and CEO of Acuvity Consulting. He played a key role in its development, providing strategic leadership and expertise that were instrumental in shaping the platform’s growth and success,” said Cheng. “The acquisition by Caseware marks a significant milestone for both the solution and the profession. I am confident that the Caseware team, renowned for its innovation and commitment to excellence, will enhance the capabilities of LeaseJava, providing even greater value to users. Caseware’s global footprint and unparalleled ability to deliver expertly crafted technology and domain expertise worldwide, underscores their position as an industry leader.”
Caseware’s US customers will be the first to benefit from LeaseJava. The organization also plans to extend the solution’s availability to other markets, including Canada and the UK. LeaseJava has been available for sale in the US and supports US GAAP, IFRS and GASB lease accounting, with a revised onboarding process for new customers to purchase over the coming months.
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