The Tax Reform Act of 2014 may affect electric vehicles by eliminating the $7,500 tax credit afforded to buyers.
Representative Dave Camp, Chairman of the House Committee on Ways and Means, released the 2014 Tax Reform Act earlier this week in which a provision exists that seeks to repeal the current EV tax credit. The federal credit that affects plug-in electric vehicles is up to $7,500 and is known as Internal Revenue Code Section 30D or IRC 30D.
If passed, the credit for qualified plug-in vehicles would be eliminated, effective for new vehicles acquired after 2014. The Joint Committee on Taxation (JCT) estimates that the provision would increase revenues by $5 billion over 2014-2023.
While this isn’t the first time a repeal on IRC 30D has been attempted, times have changed and electric vehicle sales are on the rise. Partly thanks to the Tesla Model S’ popularity, some would argue that the incentive is no longer needed to persuade shoppers to get into an electric vehicle.
For a more in-depth look at the issue, hit the source link.
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