House Plan Would Eliminate EV Tax Credit

A $7,500 federal tax credit that has fueled sales of plug-in electric vehicles in recent years could be eliminated if House Republicans can include the proposal in the tax cut bill now under discussion, reports Reuters.

by Staff

November 2, 2017

1 min to read

A $7,500 federal tax credit that has fueled sales of plug-in electric vehicles in recent years could be eliminated if House Republicans can include the proposal in a tax cut bill now under discussion, reports Reuters.

The elimination of the credit could crush sales of electrified vehicles such as the Tesla Model 3, Chevrolet Bolt, and Nissan Leaf. The Obama-era credits were put in place in 2008 and 2009 for plug-in and converted plug-in electric vehicles.

Electric vehicle sales collapsed in Georgia after the state eliminated its $5,000 state credit in June of 2015, reports Bloomberg. Fewer than 100 electrified cars were sold per month after the incentive was no longer offered, compared with 1,400 per month before the move.

Environmental groups and an automotive industry trade group criticized the proposal. General Motors said the credits "help accelerate the acceptance of electric vehicles," reports Reuters.

Topics:Plug-In Hybrid Electric Vehicles Taxation Tax Credits U.S. Congress Battery-Electric Vehicles Small Fleet

Originally posted on Automotive Fleet

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