November 6, 2017

Federal EV Tax Credits On The Chopping Block


The proposed House GOP tax bill moving through Congress could kill the federal tax credit for electric vehicles (EVs):

A massive GOP tax-reform bill would end a $7,500 credit for the purchase of electric vehicles and overhaul other energy-related provisions within the tax code.

Currently, the federal government generously provides a $7,500 tax credit for each new EV sold.

The EV market has long been dependent on tax credits and subsidies, meaning losing the tax credits could hit the bottom line for EV automakers like Tesla:

Automakers fear a similar sales plunge if the federal tax credit goes away. Losing the credit would crush sales of electric cars just as most major automakers are beefing up to sell a slew of EVs over the next five years. “The credits matter a lot,” says Eric Noble, president of the CarLab, a consulting company in Orange, Calif. “In states without EV mandates or incentives, you’ll see sales crater.”