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.