Lawmakers Push E-Vehicle Tax Credits
Group of senators proposes extending $7,000 tax credit for buyers of EVs.
Apr 11, 2019
WASHINGTON, D.C. —A bipartisan group of lawmakers plans to introduce a bill to bump up federal tax credits for purchasers of electric vehicles, according to CNBC.
EV car buyers have benefited from federal tax credits as the government encourages consumption of the low- and no-emissions vehicles. But the current $7,500 tax credit for buyers of EVs phases out over 15 months once an automaker sells 200,000 electric cars. The tax credit for Tesla buyers was halved to $3,750 on Jan. 1, and General Motor’s credit was halved on April 1.
Called the Driving America Forward Act, the bill would grant each buyer a $7,000 tax credit until the manufacturer sells 400,000 additional EVs after the original 200,000. It also would shorten the phase-out schedule to nine months instead of 15. The EV credits are paid directly to consumers, who are allowed write them off on their tax returns.
“The EV tax credit is unnecessary and should be eliminated,” said Paige Anderson, NACS director of government relations. “The government should not be picking technology winners or losers, nor should taxpayers subsidize wealthier Americans purchasing high-end electric vehicles. This tax credit was created more than a decade ago with the purpose of developing a new market for EVs. The market is developed and continues to grow. Thus, these vehicles should compete on the same level playing field as other vehicles.”
Sens. Debbie Stabenow, D-Mich., Gary Peters, D-Mich., Lamar Alexander, R-Tenn., and Susan Collins, R-Maine, and Rep. Dan Kildee, D-Mich. are the bill’s sponsors.
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