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.
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.”