The U.S. federal E.V. tax credit could be expanded with bipartisan support. Tesla and G.M. will be free of punishment, and other carmakers will be forced to redirect the manufacture of E.V.s completely.
In the U.S. there is an apparent lack of interest in buying electric cars, so this extension of credit is excellent. It will make it so the taxes on cars are lower for both the producer and the buyer.
Here are some details about the proposed credit extension:
For those watching the EV tax credit, here’s the latest I’ve seen: Talks were held yesterday, led by Senate Finance Committee Chairman @ChuckGrassley. There’s a push to get a deal on temporary tax breaks (known as extenders) into Tuesday’s spending bill 1/ https://t.co/AaRHwQYNEG
— Tom Randall (@tsrandall) December 16, 2019
3) Any Tesla and GM vehicles sold in 2019 (between the old phase-out and the extension) would get the credit, but those credits would not apply to the 600k phase-out milestone. So starting with enactment, both companies would get a full 400k sales before the phaseout starts again
— Tom Randall (@tsrandall) December 15, 2019
5) All subsidies would end in 2024, so to fully maximize credits carmakers must sell 600k EVs by the end of 2023. That, combined with the truncated phase-out period, helps motivate carmakers to move sooner, rather than delaying for cheaper batteries and then flooding the market
— Tom Randall (@tsrandall) December 15, 2019
Side note: This is key for the upcoming EV pickup-truck wars. Without this update, GM would be at a huge disadvantage vs Ford, Rivian, Cybertruck. Tesla would need to move quickly for the Cybertruck to qualify, and even then it would only have a brief window with matching credits
— Tom Randall (@tsrandall) December 15, 2019
Correction: On closer reading, it doesn’t look like Tesla and GM buyers who purchased in 2019 (after the old phase-out) will qualify for the new $7k, rather they’ll just get what was in place at the time. If anyone has additional info, please chime in pic.twitter.com/qJT3z8xgW6
— Tom Randall (@tsrandall) December 15, 2019
Those sales don’t apply to the new phase-out period. So once this is enacted, Tesla and GM would both get a full 400k new sales with credits to owners.
— Tom Randall (@tsrandall) December 15, 2019