General Motors is currently one of the “loudest voices” in Washington with regards to both the issues of EV tax credits and the national fuel economy regulations, according to The Detroit News.
GM, along with Tesla, wants to raise the cap on the amount of electric vehicles a company can sell before it is excluded from the EV tax credit program. Under the current rules, an automaker can sell 200,000 electric vehicles before its customers can no longer apply to receive the $7,500 EV tax credit. Both GM and Tesla have already surpassed this threshold, so its customers can only receive a partial, lower deduction of $1,875.
GM argues the EV tax credits can help make electric vehicles affordable for customers. With the development and production of lithium-ion batteries set to remain costly for manufacturers for the foreseeable future, companies like GM and Tesla see tax credits as the best way to promote their widespread adoption.
“The EV tax credit provides customers with a proven incentive as we work to establish the U.S. as a leader in electrification, helping make electric vehicles more affordable for all customers,” GM spokeswoman Jeannine Ginivan said in a statement sent to The Detroit News. “Modifying the tax credit will allow all customers to continue to receive the full benefit and provide them with a greater choice of vehicles.”
A bipartisan bill introduced by U.S. Sen. Debbie Stabenow earlier this year would raise the cap from 200,000 cars to 600,000, which would make new buyers of the Chevrolet Bolt EV and other future GM electric vehicles eligible for the tax credit. In a statement, Stabenow claimed passing her bill would be “one of the best actions we can take right now to reduce carbon pollution and help consumers transition to clean energy technologies.”
However, GM found itself in Democrats’ crosshairs when it sided with Trump in the president’s ongoing fight with California over fuel economy regulations. The Trump administration wants to loosen the current set Obama-era fuel economy standards, while California wants to introduce its own fuel economy laws separate from any set national standard. GM and a consortium other major automakers, which included Toyota, sided with the White House in the legal battle, saying they want a single standard that will be cheaper and easier to adhere to. Despite siding with the White House in the emissions row, GM says it remains “committed to year-over-year improvements in conventional fuel economy,” and plans to continuously improve the fuel economy of its internal combustion-engine vehicles.
Source: The Detroit News