- General
- April 10, 2019
- 4 minutes read
U.S. Lawmakers Said To Introduce Bill To Lengthen EV Tax Credits
A GM electric vehicle image: GM According to Reuters, a bipartisan group of U.S. lawmakers have ushered in a new legislation…
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| A GM electric vehicle
image: GM
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According to Reuters, a bipartisan group of U.S. lawmakers have ushered in a new legislation to expand electric vehicle tax credit by 400,000 vehicles per manufacturer, above the current 200,000 cap. Such move will aid the likes of Tesla and GM which are currently in the midst of a gradual tax credit phase-out that’ll make their electric vehicles more costly for buyers.
The bill is sponsored by Democratic senators Gary Peters and Debbie Stabenow, and Republican senators Susan Collins and Lamar Alexander, and Democratic representative Dan Kildee. It’ll grant each automaker a $7,000 tax credit for up to 400,000 additional vehicles but shorten the phase-out period to nine months, compared to 15 months for the existing tax credit.
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| A GM electric vehicle
image: GM
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The current $7,500 EV tax credit phases out over 15 months once an automaker sells up to 200,000 electric vehicles, first dropping by half followed by concurrent drops till a complete phase-out. Both Tesla and GM has seen its tax credits cut to $3,750 with a phase-out due in soon time. This extension will allow its vehicles sell for lower rates to customers, and may encourage more buyers to adopt electric vehicles.
The extension bill would cost an estimated $11.4 billion, Reuters says.
