CNN Money reported on Friday that General Motors now expects it will meet the tax-credit threshold this year, which occurs after an automaker sells 200,000 electric cars. After surpassing 200,000 sales, the tax credits enter a sunset period. For the next six months, buyers will receive a $3,750 credit, and then a $1,875 credit for the next six months.
Elizabeth Winter, a GM spokesperson, said the tax credits have certainly helped attract buyers to the automaker’s electric cars, but automaker believes it’s rolling out the products with the right prices. Though, the Bolt EV’s full $37,495 MSRP will be a much tougher sell than sweetening the deal with a $7,500 tax credit.
Other automakers such as Ford and Nissan haven’t come close to reaching the cap, and the credits are available to every single automaker. The latest tax cut legislation allowed the credits to remain after some legislators called for their removal from the tax code.
If battery technology remains a more expensive option in the years to come, we may see automakers lobbying for more tax credits if electrification prominent.