EV Tax Credit Extension
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Sunday November 18, 2018 – EV Tax Credit Extension – The current Federal EV tax credit, which can be a maximum of $7,500, is set to phase out after a car company sells 200,000 plug-in vehicles. So far Tesla is the only car company that has reached this figure but GM and Nissan are coming very close to this target.
Tesla recently announced that you will still be able to get the full tax credit if you order a Model 3 by the end of November. After that date the car will not be delivered until January 2019 when the tax credit will fall to $3,750. For cars delivered after June 30, 2019 the tax credit will be just $1,875 and will phase out completely starting January 1, 2019.
Both GM and Nissan are expected to reach the 200,000 car mark early next year with the tax credit phasing out some time in the first half of 2020.
The EV Drive Coalition is a group of 15 entities that are working together to help expand Electric Vehicles in the US. Along with GM, Nissan, and Tesla the group also consists of makers of EV charging equipment such as EVGo and Chargepoint and other groups like Plug-in America, the Electric Automobile Association, and Calstart. This group is lobbying for the Electric Vehicle Tax credit to be extended as they consider that the EV Market "is far from fully mature".
Opposing the EV tax credit is the American Energy Alliance which is funded by the fossil fuel industry. They sent a letter to Representative Ken Brady that opens with "We, the undersigned organizations, write to strongly object to any effort to expand the electric vehicle tax credit in any way." In the letter they bring out some frequently debunked ideas like EVs not being cleaner that current gas vehicles. They also take a shot at subsidies for wind energy and state that these subsidies can become "institutionalized and never repealed". I noticed that they don't mention the massive subsidies that the fossil fuel industry have been receiving for decades even while these companies are some of the most profitable on the planet.
Senator John Barrasso (R-WY) has introduced a bill into the Senate that is designed to kill the EV tax credit. The text of the Bill, named the "Fairness for Every Driver Act", is not currently available to the public but it appears that the bill calls for an immediate end to the tax credit for plug-in vehicles and for a new tax on these vehicles to cover the revenue normally raised by the Federal gas tax. This is the second time that the Republicans have tried to kill the EV tax credit.
In the House things are a little different. Congressman Peter Welch (D-VT) has introduced a bill, H.R.6274 that would remove the 200,000 cap and extend the tax credit until December 31, 2028.
The Tax credit is a great thing to have if we are going to make the switch from gas to electric cars in a timeframe that would help reduce the impact of global warming and cut down the serious health effects that are a direct result of burning fossil fuels.
After the midterm elections, with Democrats in control of the House and Republicans expanding their hold over the Senate, I don't expect either of these two bills to go very far. The thing that is most likely to spur action is for people to write to their congressman or Senator and let them know that they support expanding the EV tax credit.
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