Republican Tax Proposal May See EV Credit Program Scrapped
If implemented, the Republican party’s new tax proposal may see the Plug-In Electric Drive Vehicle Credit program scrapped.
The EV credit program, introduced in 2010, provides monetary compensation to those who have purchased a plug-in hybrid or full electric vehicle. Buyers of plug-in vehicles with at least a 5 kWh battery capacity receive a $2,500 credit, with each kWh unit adding $417 to the total until reaching a ceiling $7,500. If an automaker sells more than 200,000 of a particular plug-in or electric model, the vehicle is no longer eligible for the credit.
SEE ALSO: Will My Tesla Model 3 Qualify for Tax Incentives?
The Republican tax proposal, which was detailed on Thursday, would do away with this tax credit program entirely. Expectedly, automakers with major investments in EVs aren’t too thrilled about this change. In a comment made to ARS Technica, General Motors said it would “work with Congress to explore ways” to maintain the incentive,” and claimed the credit program helps to “accelerate the acceptance of electric vehicles.” The Chevrolet Bolt EV starts at $37,495 in the US – so it costs $30,000 with the tax credit. Without the credit, the Bolt seems is an expensive proposition for a compact vehicle with a limited range.
If passed this year, the proposed tax changes would be implemented on January 1st, 2018.
Sam McEachern holds a diploma in journalism from St. Clair College in Windsor, Ontario, and has been covering the automotive industry for over 5 years. He conducts reviews and writes AutoGuide's news content. He's a die-hard motorsports fan with a passion for performance cars of all sorts.
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Long overdue time to scrap this taxpayer funded scam. And that includes no more money for Tesla, I hope. Government Motors 2.0 finally needs to succeed or likely fail based on consumer demand and product quality which currently is abysmal. I'm so sick of reading how great EV's are for the planet. Totally ignored are how the recharge energy is produced (in the USA and around the world it is primarily from COAL!) and the huge carbon footprint for mining, transporting and refining lithium...and then huge electrical and water needs for producing the batteries. Don't waste your time trying to refute compelling science regarding both those well researched assertions. LOLOL And I'm a registered Independent voter and thinker, so leave politics out of it if you want to try anyway. ;-)