House Plan Would Eliminate EV Tax Credit

A $7,500 federal tax credit that has fueled sales of plug-in electric vehicles in recent years could be eliminated if House Republicans can include the proposal in a tax cut bill now under discussion, reports Reuters.

The elimination of the credit could crush sales of electrified vehicles such as the Tesla Model 3, Chevrolet Bolt, and Nissan Leaf. The Obama-era credits were put in place in 2008 and 2009 for plug-in and converted plug-in electric vehicles.

Electric vehicle sales collapsed in Georgia after the state eliminated its $5,000 state credit in June of 2015, reports Bloomberg. Fewer than 100 electrified cars were sold per month after the incentive was no longer offered, compared with 1,400 per month before the move.

Environmental groups and an automotive industry trade group criticized the proposal. General Motors said the credits "help accelerate the acceptance of electric vehicles," reports Reuters.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Understanding The Fleetification of Everything

As fleet miles increase exponentially, and as new stratum of fleet enter both consumer and business use cases, the "founding fathers" who gathered at Fleet Forward in Miami last week have some work to do.

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Job Finder: Access Top Talent. Fill Key Positions.

>