EV Tax Credit Likely to Be Extended: Cap Raised from 200k to 600k for $7,000 Tax Credit

Interesting story over at MarketWatch:

Tesla TSLA, -0.36%  , General Motors GM, -1.25%  and other players in the electric-vehicles sector have a role in the scramble around a possible tax package with so-called “tax extenders,” as they could score an expansion for a key EV credit.

MarketWatch

Ohhhh helllloooooo!

Thanks to bipartisan, broad-based support, we believe the EV tax-credit extension is very well-positioned for enactment.

Mike Carr, EV Drive Coalition

“It is less a question of if it’s in a tax package than if a tax package will happen at all. If there is an agreement on tax, there is a very high likelihood the EV provision is included,” Carr added in an email to MarketWatch.

Marketwatch

Call your representatives.

The current $7,500 EV tax credit, which allows taxpayers to deduct part of the cost of buying an electric car, phases out once an automaker hits 200,000 cumulative EV sales, and both Tesla and GM already have sold more than 200,000 electric vehicles. If the extension gets the green light, there would be a $7,000 credit until a manufacturer hits 600,000 vehicles sold.

Marketwatch

This would be huge, and would mean Model Y qualifies for a $7,000 federal income tax credit.

It would also mean that everyone who bought a Tesla this year would qualify for a $7,000 tax credit, rather than $3,750 or $1,875.

UPDATE: There has been some discussion about whether 2019 buyers would get the full $7,000 now that the cap has been raised form 200,000 to 600,000. I originally thought they would, but am now starting to believe (based on the draft text of a bill I reviewed) that the extension would only take place for new vehicles sold after the bill was enacted. Don’t get too caught up in the details though: none of this is for sure until the extension becomes law. Until then we are just speculating about what the final details will be.

U.S. Lawmakers look set to pass an EV tax credit extension before the end of the year. The cap will be raised from 200,000 to 600,000 for the $7,000 tax credit.

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3 thoughts on “EV Tax Credit Likely to Be Extended: Cap Raised from 200k to 600k for $7,000 Tax Credit

  1. I fall in that category. Going from 3750 to 7000 credit would not be something I would say no to. 🙏

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