EV Tax Credit Won't be Extended

The feds declined to extend the EV tax credit, so the incentives for GM and Tesla vehicles will end shortly.

GM and Tesla had both lobbied hard for an extension, proposing to knock $500 off the $7,500 credit and thereby upping the vehicle maximum from 200,000 to 600,000 vehicles.

But each company and their political allies – like Senator Debbie Stabenow (D-MI) – were rebuffed by none other than President Donald J. Trump.

Last year, after GM announced plant closings and 14,000 layoffs, Trump tweeted the following:

"The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including ... for electric cars."

Back in December, Trump's economic adviser Larry Kudlow mentioned that, "As a matter of our policy, we want to end all of those subsidies."

Fast forward to the present, and it’s not exactly surprising that Sen. Stabenow claimed, “There has been extreme resistance from the president. It’s going to be difficult.”

Opponents of the extension argued that most of the EV tax credits – as high as 79%, according to one study – went to those with adjusted gross annual incomes above $100,000. Proponents argued that leases constituted a majority of the EV market.

Meanwhile, both GM and Tesla have already seen their tax credits shrink to $1,875/vehicle, which ends on Dec. 31 for GM and March 1 for Tesla.

Read more here: https://www.cnet.com/roadshow/news/tesla-gm-federal-electric-car-tax-credit-extension/