New Bill Introduced To Lift Cap On Electric Car Tax Credit In US15
Two automakers will likely reach the 200,000 threshold for the federal electric car tax credits in the near future: General Motors and Tesla. Both automakers were early movers on the technology, which could put them at a disadvantage as electric cars and certain plug-in hybrids begin to sell in larger numbers.
To remedy this, Rep. Peter Welch (D-VT), has introduced a new bill in the United States House of Representatives that lifts the 200,000 cap and expands the tax credit to an unlimited amount of cars for 10 years. As the law currently stands, after making it through the recent tax-cut legislation, once an automaker sells 200,000 qualifying electric cars, the credits enter a sunset period.
Automakers that pass 200,000 vehicles sold then receive 50 percent of the original tax credit for two quarters, and then 25 percent of the credit for a final two quarters. After that, the automaker must sell their electric cars at full price. The credit is often advertised in the sale price and gives automakers advertising firepower. For example, the 2018 Chevrolet Bolt EV features a starting price of $37,495 but can be had for $29,995 with the federal tax credit.
GM has previously said it expects to surpass the 200,000 cap sometime this year, and CEO Mary Barra has called on the government to expand the credits.
H.R.6274 – To amend the Internal Revenue Code of 1986 to extend certain tax credits related to electric cars, and for other purposes, boasts two co-sponsors: Rep. Jared Huffman (D-CA) and Rep. Jacky Rosen (D-NV) and a version of the legislation will likely be filed in the Senate by Sen. Jeff Merkley (D-OR).
Rather critically, the new bill would make the tax credit available instantly, rather than having a new owner wait until tax season to receive the credit. It would also reinstate credits for purchasing an electric-car charging station.
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There are automakers sitting back and waiting for others to develop the technology to a point that it works mainstream (range, price, weight, etc.). Those companies who wait shouldn’t be eligible.
I agree to this new bill, but they must exclude all foreign brands from that tax credit now. Their own governments apply tariffs to U.S. brands.
the libs said trumps tax cuts were a gift to the rich and this lib tax break is for the rich who can afford these expensive cars. how about a tax break for people who can only afford a chevy trax
i agree. i keep hearing that for people buying $80K or $100K vehicles, the $7500 tax credit isn’t a big incentive.
i don’t believe that but let’s go with it and remove the credit and see what happens.
I happen to be right on the fence, and that instant credit is my only hope for new, beings I’m too spoiled to settle, and those short range cars won’t work for me. Too many miles to continue leasing so choices are few.
The Cleveland Browns have better odds of winning a Superbowl this season than that this will pass…The Tax Bill that passed by the House REMOVED the EV tax credit effective immediately…
People who come to market first should be the only companies to be able to use that technology.
I am tried of seeing companies copy other companies work and then call it theirs and then make profits off of it!
Buyer dont hold manufacturers accountable so the government should!
Yup, Benz should thrive in 2018 just making the 1886 3-wheeler, and Ford’s Model-T Market should be fully protected, right? Every other car-maker is just copying them, and making improvements that should never have been allowed.
Glad to see free market enterprise is still alive and well in America………………………
America’s “free market” mantra is BS without free-movement of labor. Unless anybody who wants to work can come to America without border-controls and sell their labor competitively, then the labor market has as much planned-exploitation as any communist state.
Read John Kenneth Galbraith and learn how borders aren’t for “culture”, they’re for factory-management. Build two factories, one each side of a border. Start-up the factory on the side with the cheapest labor, then immediately negotiate with the other side for a cheaper rate, when agreed, temporarily shut-down the first factory and open the second one on the new cheaper rate of labor, and immediately start negotiating for lower rates from the first factories’ workers, when that;s done, swap back to the other side and immediately start negotiations for a lower rate from the other side, repeat endlessly. THAT’S WHAT BORDERS ARE REALLY FOR.
But government interference favoring one over the other doesn’t make it any better. Borders aren’t for factories either, ask the european countries about the 1940’s when one country tried to remove most of the borders, or about Texas/Mexico relations in the 1800’s. You are also free to travel, live and work anywhere in the 50 states of the union.
the American car factories are in mexico because mexico has free trade agreement with other countries around the world and mexican made cars can be sold there without a import tax. chevies build in mexico can be sold around the world without a import tax and ones made in detroit can not.
$2/hour helps too.
The average Tesla owner has a family income of $320K a year. Why should taxpayers subsidize them?
That is what I tell my retired/disabled friends and relatives who still have to pay income tax on their small pensions, “You helped pay for that person’s electric car”.