Three rival automakers have come together for a common goal. On Tuesday, General Motors, Tesla and Nissan launched the EV Drive Coalition with a goal to extend the current $7,500 federal electric car tax credit, Bloomberg reported Monday.
It’s no surprise the coalition includes the three automakers. Tesla was the first automaker to sell 200,000 qualifying vehicles this year, and after December 31, 2018, the credits enter a sunset period. GM expects to reach the 200,000-car cap by the end of this year, and Nissan isn’t far behind with sales of the second-generation Leaf picking up.
The automakers will lobby the United States Congress to extend the $7,500 electric car tax credit. So far, legislation has been introduced in both the U.S. House of Representatives and Senate to modify the tax credit in various forms. One Republican proposal calls to end them entirely, while a second would provide unlimited credits through 2022.
However, the second Republican proposal earned criticism as it would end the credits entirely come January 2023—even for automakers who haven’t launched an electric car by that point. Under the current program and law, the credits go away after an automaker sells 200,000 qualifying cars. Automakers like Ford or VW still have bountiful credits, while GM and Tesla would be at a disadvantage as new electric cars launch.
In the House, a Democratic proposal called for unlimed credits and extend them for another 10 years. Additionally, the credits would become a point-of-sale rebate.
Dan Turton, GM’s vice president of public policy, said GM wants to see the credit extended so “all customers continue to receive the full benefit going forward.” Make no mistake, though, this is a lobbying effort to ensure GM isn’t flanked in the electric-car segment when rivals begin to roll out their own affordable EVs.
Comments
Big government corporate handouts at the expense of American taxpayers. I am sure they love the $7,500 per car they cant sell without the tax money.
Aweful!
“In the 2015-2016 election cycle, oil, gas, and coal companies spent $354 million in campaign contributions and lobbying and received $29.4 billion in federal subsidies in total over those same years — an 8,200% return on investment.”
Are you dense? This is a tax credit. You’re so brainwashed and used to the US Federal Government charging you to breath and occupy space, that you get upset when they don’t charge someone for it.
And you wonder why we are $20+ trillion in DEBT!
I hope Trump Administration says no to corporate welfare. Nissan is not even an American company!
i don’t have to wonder. i just look at that wasteful trillion dollar tax cut trump pushed last year. i remember that tax cut w passed before invading iraq.
and before you start harping on obama, remember that in a recession, tax revenues plunge but costs don’t.
They need to keep this rebate in place for at least a few more years. The country will greatly benefit from the transition to electric cars, for a number of reasons. When more are sold, the prices will come down, and the sooner the better. To say that a program like this has anything to do with the insane national debt we have is just crazy… this is an investment in everyone’s future.
Just as I suspected. Most people don’t understand the tax credit. It is NOT a rebate and it does not go to any corporation. It goes to the taxpayer, but only if the TP has enough income to be able to use a tax credit. In my case, the year I purchased my first Volt, I didn’t make enough to have that high of a tax burden so my benefit was a credit of just $3500. For my second Volt I was able to use the full credit amount and therefore could use my money to purchase other things that Americans do.
The tax credit does not put money in the taxpayer’s pocket. It allows him to keep his hard earned money in his own pocket instead of giving it to the government.
We have experience now so let’s fine tune it to be “point of sale” to help lower income people and I’m ok with tailoring it toward domestic.