If implemented, the Republican party’s new tax proposal may see the Plug-In Electric Drive Vehicle Credit program scrapped.
The EV credit program, introduced in 2010, provides monetary compensation to those who have purchased a plug-in hybrid or full electric vehicle. Buyers of plug-in vehicles with at least a 5 kWh battery capacity receive a $2,500 credit, with each kWh unit adding $417 to the total until reaching a ceiling $7,500. If an automaker sells more than 200,000 of a particular plug-in or electric model, the vehicle is no longer eligible for the credit.
SEE ALSO: Will My Tesla Model 3 Qualify for Tax Incentives?
The Republican tax proposal, which was detailed on Thursday, would do away with this tax credit program entirely. Expectedly, automakers with major investments in EVs aren’t too thrilled about this change. In a comment made to , General Motors said it would “work with Congress to explore ways” to maintain the incentive,” and claimed the credit program helps to “accelerate the acceptance of electric vehicles.” The Chevrolet Bolt EV starts at $37,495 in the US – so it costs $30,000 with the tax credit. Without the credit, the Bolt seems is an expensive proposition for a compact vehicle with a limited range.
If passed this year, the proposed tax changes would be implemented on January 1st, 2018.
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