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Electric Car Tax Credit – Update

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electric car

Photo: Pixaline

Earlier this week, GM’s Mary Barra joined the industry in lobbying the government to maintain the proposed elimination of the electric car tax credit. This topic is especially pertinent to many mainstream manufacturers whose future product lineups include electric models.

Now, electric vehicle (EV) proponents and alternative energy enthusiasts can breathe a sigh of relief at some news that indicates a positive potential outcome. Per Bloomberg, an anonymous Republican with insider knowledge has confirmed that both the House and Senate negotiators have settled on a compromise package that will leave the electric car tax credit intact.

Currently, the tax credit (first established as part of a 2009 stimulus bill), applied to an automaker’s first 200,000 qualifying vehicles sold during a given year. Although major OEMs including GM, Tesla, and Nissan have yet to reach that cut-off limit to receive the tax credit, they are definitely getting close to it. Other OEMs following in their wake (such as Hyundai, VW, Audi, and Daimler) have a ways to go before they reach the 200,000 cap. So, this provision of the tax credit will likely need to be revisited in the next few years, as electric vehicles gain in popularity and circulation.

Although Congress has yet to vote on the legislation that will finalize the retention of the electric car tax credit provision, they are expected to do so within the next few weeks. Stay posted for more details about this exciting development that promises to help promote EV sales in 2018 and beyond.

News Sources: GM Authority, Bloomberg, Electrek