After automakers and environmental groups lobbied hard, a Bloomberg report published Wednesday said the compromised tax-cut bill will retain the current electric-car tax credits. The credits are worth up to $7,500 and help automakers subsidize the cost of electrified vehicles.
The source told the outlet the electric-car tax credits are one of many provisions spared in the final bill, which Congress could vote on as soon as next week. The Senate’s bill didn’t touch the tax credits, while the House’s bill eliminated them, among many other popular credits and deductions. Notably, wind-energy tax credits will also remain. GM CEO Mary Barra also publically called for Congress to retain the credits.
Every automaker is eligible for the tax credits, which were part of a 2009 stimulus package, up to 200,000 vehicles sold. After 200,000 units, the credits enter a sunset period until they’re eventually reduced to zero. Even with the credits saved for now, automakers like General Motors, Nissan and Tesla are approaching the limit. The credits will certainly be up for discussion in the years to come.
GM specifically has plans to introduce 20 new electric cars by 2023. By then, some analysts believe electric cars will reach parity with the internal-combustion engine.