What’s Next For Federal EV Tax Credits?

[TMC Staff]

They’re set to phaseout for Tesla in 2019, with GM close behind, but could Congress extend or eliminate them? Federal tax credits of $7,500 were enacted in 2010 to help spur sales of electric vehicles, which was a priority for the Obama administration. Unfortunately they’re not permanent, and are scheduled to phase out during the...
[WPURI="https://teslamotorsclub.com/blog/2018/11/07/whats-next-federal-ev-tax-credits/"]READ FULL ARTICLE[/WPURI]

 

[arondaniel]

Hmm...

Maybe someone could mention to Trump that GENERAL MOTORS (& tesla) are US-American companies with American jerbs... so why should we gift our American electric car tax credit dollars to only FOREIGN automakers? That's just un-American.

Also too: America.

 

[DavLisa65]

Hmm...

Maybe someone could mention to Trump that GENERAL MOTORS (& tesla) are US-American companies with American jerbs... so why should we gift our American electric car tax credit dollars to only FOREIGN automakers? That's just un-American.

Also too: America.

Because Tesla want grease Politicians pockets.

 

[narayan]

The right way to do it is to eliminate on a given date rather than number of units. This way all cars see same increase in price at the same time. Those who came in late get the discount for a shorter time which might even out if they better sales (as in the case of Tesla).

 

[cpa]

I really do not see this as something the House will consider under the new leadership that takes effect in January. We were fortunate that the Senate removed the repeal of this provision when they debated the TCJA this past December and the House agreed in joint committee.

I think the Democrats in the House will have too many items on their plates in the early going, given the political climate swirling about Washington. An insignificant income tax break (to them, anyway) will not be foremost among the other items that they will want to address.

I hope I am wrong.

 

[Az_Rael]

were enacted in 2010 to help spur sales of electric vehicles,

With the Model 3 breaking into the "regular" car sales charts (and beating some ICE models), I would think the credit has possibly served its purpose.

In the end, Tesla continuing to take market share from other auto companies will be what really spurs them into making mainstream EVs and not just compliance cars.

 

[voyager]

The answer is of course to have EVs that aren't dependent on EV tax credits. I realize that with gasoline prices 2.5 to 3 times cheaper than for instance Western Europe, you have a dramatically other tipping point.

 

[voyager]

To picture what I'm hinting at...

 

[DriveMe]

I think the article is incorrect about the phase-out period. It states:

"scheduled to phase out during the calendar year after an automaker sells 200,000 EVs"

"General Motors is expected to be the next automaker to reach 200,000 total EV sales, and it should happen sometime during 2019. That would mean the federal tax break for the Chevrolet Bolt EV (and also the Cadillac CTS and Chevrolet Volt plug-in hybrids) would phase out beginning on January 1, 2020."

As I understand, the phase-out is based on calendar quarters, not calendar years. So, for example, if GM reaches the 200K number in Q1, the phase-out will start in Q3, and so on.