2014 Tax Reform Could Eliminate EV Incentives
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.
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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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[Source: TTAC]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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Excellent! You are right to bring attention to Chairman Camp's Tax Reform Proposal because the loss of the IRC 30D tax credit could severely impact development of this market and threaten the progress that OEMs are making in growing this market. However, there seems to be a growing consensus that comprehensive tax reform is highly unlikely in 2014 so this may be an issue for 2015.