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General Motors CEO Mary Barra Calls On Congress To Expand Electric-Car Tax Credits

At the CERAWeek energy conference in Houston, Texas, General Motors CEO Mary Barra asked the United States Congress to expand the electric-car tax credits, which make the automaker’s electric vehicles more affordable for consumers.

The credit, worth up to $7,500, will enter a sunset period after an automaker sells 200,000 electric cars. GM has sold more than 160,000 plug-in and battery-electric cars eligible for the credit and it believes it will surpass the 200,000 mark this year. Once the automaker reaches 200,000 electric cars, buyers receive a $3,750 credit for the next six months, then a $1,875 credit the following six months. After that, GM can’t rely on any federal subsidies.

“We feel tax credits should be expanded so our customers continue to receive the benefit going forward,” Barra said. “We believe in an all-electric future.”

GM will launch 20 new battery-electric cars by 2023.

Every automaker is eligible for the credits, but GM, Nissan and Tesla have been most proactive in launching electric cars. Most automakers are nowhere near the 200,000-unit threshold.

U.S. lawmakers opted to keep the electric-car tax credits in the latest tax cut and reform bill, but Congress will have to address an expansion separately.

Former GM Authority staff writer.

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Comments

  1. $7500 federal and some states also offer additional tax credits right? What’s the best savings to be had on a full electric vehicle?

    Reply
    1. Some states do offer additional incentives along with some counties, towns and even utility companies…

      The crazy low “deals” are often in the form of a lease, which you can buy out or wash your hands clean of at turn in…Most automakers follow the monthly incentive based sales model, that means offers change on a monthly basis…The Bolt EV for Oct/Nov last year was $0 down and if you took all your incentives (at the time it was federal, state, utilize and $700 for Costco), divided that total by the remaining lease payments ($0 down so 35 months remain) and their “effective” monthly payment was under $100/mo…

      Reply
  2. I was quoted a $35K Bolt for $24K if I got it before the tax cut was out.

    If the government wants to expand this segment they will need to continue some kind of tax abatement.

    You have to smear some hamburger on the kid to get the dog to play with him sometimes.

    Reply
  3. Congress just has to remove the foreign brand sales from the tax rebate, and give it to the three domestic brands that sells EVs. There will be plenty of money recovered!

    Reply
  4. I seriously doubt any increase in tax benefits for electric vehicles. If anything I believe they will decrease due to pressure from those in Congress who want to see market forces at work vs government picking winners or losers.

    Reply
  5. Not really a increase or expansion but really continuation past the set numbers we had.

    I have no issue with continuing them but once they do support them selves they should be rolled back.

    Take the Ethanol money to expand it.

    Reply
  6. Why are subsidizing anything? It already nonsense that these are Zero Emissions Vehicles when you look at the total picture.

    Reply
    1. When we charge with renewables where are the emissions? No not everyone can yet but it’s coming. Like it or not, we HAVE to.

      Reply
  7. One has to think that even if Congress were to approve an extension, there’s every chance that Donald Trump would veto such legislation because General Motors’ decision to electrify it’s fleet goes against Trump’s decision of withdrawing from the Paris Climate Accord and that any ZEV tax credit extension would simply add to the US National Debt.

    Reply
  8. The current congress is the worst ever and will soon be thrown out in favor of one more favorable to renewables. If Trump even finishes a full term I’ll be surprised. Blue states are already stepping up with incentives, so we’ll do it ourselves if we must!

    Reply
  9. For the time being the two biggest sources of utility-grade electricity are natural gas (41%) and coal (25%).

    Both are job creators, in case the current admin needs justification to encourage EV sales and production (also more job creators).

    Reply
    1. Nuclear!

      Reply
  10. Sorry Captain but coal is toast. Here in Oregon we don’t use any, and I’m signed up for renewable only. Turn off Fox and look it up, the jobs are moving to renewables too. If not for our pathetic government we’d be leading the market instead of clinging to the past. Some states are stepping up regardless, knowing the current congress and pres are also toast.

    Reply
    1. Re, I’m all for renewables.

      Just saying, they need time to catch up with conventional energy sources.

      Btw, the biggest wind-power states are Texas (I was surprised), and Iowa.

      Reply
      1. I’ll congratulate on the windmills for sure!
        Growing up in South Dakota we joked it was always so windy because Wyoming sucks!
        He he, come on just joking, lovely state…… Little windy there too…

        Reply
  11. Sorry Edward, we’re sitting near a nasty dump site, and unless they figure out how to break the waste down, no nukes! All these years and no progress, just rusting tanks leaking towards our river.

    Reply
  12. It’s not about the environment, it’s about control. No one wants to do a full analysis of EV’s because the don’t want to discuss the harm battery production, lithium mining and the shortage of nickel will do to the world. Musk keeps playing with new project to keep people from focusing on his multiple missed targets and deadline.

    If we really want to help the planet, let’s get clean drinking water to the planet.

    Reply
    1. Drinking water yes, absolutely.
      The rest of your statement is just….
      Wow. Nevermind, you won’t believe it anyway…

      Reply
  13. Coal maybe toast but it’s consumption is on the raise in Germany. No one truly wants to do without.

    Reply
    1. Old news, no longer true and, like I said, going away.

      Reply
      1. When I was in college, less than a decade ago, China was bringing a new coal power plant online on the order of every 2 weeks. They are not the sole player in the developing world, the idea of coal going away or being done for is delusional.

        Reply
  14. Yeah because I am not smug, self-righteous cool aid drinker. You don’t have all the answers regardless of what you think.
    It will be interesting to see how many coal fired power plant are need a six pm when everyone gets home from work and plugs in. Solar and wind can’t supply our needs now. No one wants to honestly debate that one.

    Reply
  15. Really? Go to Norkfolk and look at the ships loading coal for Europe. Its reality, not the nonsense that the EV people would like to believe because it’s the real inconvenient truth

    Reply
  16. Really? Go to Norkfolk and look at the coal ships bound for Europe! The reality is the real inconvenient truth! Funny thing is that no one says anything about jet aircraft even though they have had little real reduction in emissions. After all, we don’t want to stop Al and Leo from flying around the world so they can tell you what to think. BTW, what real sacrifice are you making in the name of the environment. Obviously not staying away from phone’s and computers made with electricity generated by coal.

    Reply
  17. There is no electricity made from coal in Oregon. Only hydro, wind, and solar. We are fortunate to have the hydro, keeping our rates some of the lowest in the country, making EVs even more practical. All moves we make toward clean energy reap benefits in our health and environment. Nobody said we’re there yet, that’s why we need government incentives to get it going. Even China has finally figured it out and now leads the world in EV adoption and clean energy. Our idiots in charge are handing them the solar market on a platter. Lead or follow?

    Reply
    1. Well, I’ve been following this for awhile.

      China is the world’s biggest coal miner, and user. They also import from Australia, Malaysia and the US.

      They’re aggressively pursuing EVs, but they still need a lot of electricity.

      Reply
  18. Yeah everything you own or use is made in Oregon! Right!

    Reply
  19. As much as possible, yes, and I think we’re done here. Article is about EV credits.

    Reply
  20. Yeah like the computer or cell phone you typed your response on! Made in China with electricity from coal! Or how about the battery made from lithium and nickel mined with diesel fuel using very harsh mining processes.

    Reply
  21. “Once the automaker reaches 200,000 electric cars, buyers receive a $3,750 credit for the next six months, then a $1,875 credit the following six months. After that, GM can’t rely on any federal subsidies.”

    Close…The more accurate statement, “Once the automaker reaches its 200,000 electric vehicle, buyers still receive the FULL credit for that quarter and the next full quarter before the amount is cut in half to $3,750 for the next two quarters…

    Reply

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