Senate Tax Bill Would Keep EV Tax Credits While House Looks to Ax Them
One week ago, we reported on a tax plan proposed by the House of Representatives that would put an end to the federal electric vehicle tax credit. If it passed, this would come at a very poor time for automakers, which are now coming out with a large variety of new EVs.
However, it seems that not everyone in Washington agrees with axing the credit, because the Senate version of the same tax reform bill keeps the credit alive.
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Once this version and the House version are passed, the two bills will be sent to a joint committee, which will merge them into a single compromise and send them back to both the Senate and the House for another round of ratification, after which it can be sent to President Trump for ratification.
Plug-in advocates are excited (and probably pretty relieved) at the news, with Genevieve Cullen, president of the Electric Drive Transportation Association, saying, “This is a win for continued U.S. innovation and market leadership in electric drive technology at a time of intense global competition from China and other nations.” She went on to say, “The plug-in credit creates jobs throughout the U.S. supply chain while helping consumers save energy dollars.”
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The credit certainly helps defray the higher cost of the new technology, and includes its own limit, as automakers only can apply the credit to the first 200,000 vehicles—GM, Nissan, and Tesla have each used more than half of their credits.
News Source: Green Car Reports