By on December 23, 2019

Prior to Congress taking the rest of the month off to relax and presumably gear up for an impeachment trial, they first had to settle their year-end tax package. Automakers were hoping that would include an extension of electric vehicle tax credits, but it was a doomed proposition.

An extension was initially included in the bipartisan Driving America Forward Act, which manifested this spring, before being incorporated into the Democrat-friendly GREEN Act (Growing Renewable Energy and Efficiency Now). That got it through the House but not the Republican-controlled Senate, which wasn’t interested.

While the current $7,500 EV tax credit remains in place, Tesla and General Motors have both reached their 200,000-vehicle quota. Naturally, they (and other automakers) lobbied for an expansion, one which would have seen a $7,000 credit kept in place until a manufacturer sold 600,000 electric automobiles. Several Republican lawmakers openly shared their distaste for the plan, though few more openly than Senator John Barrasso of Wyoming, who had an opposing bill — called the Fairness for Every Driver Act — interested in reducing subsidies on the grounds that EV credits have already done enough.  (Read More…)

By on November 2, 2017

electric car charging smart car

It’s the last thing Elon Musk wants to hear and it’s likely not something General Motors will be too pleased about. Contained within the tax plan introduced by House Republicans Thursday is the elimination of a huge driver for electric vehicle sales — the $7,500 EV tax credit.

Automakers, and especially the two mentioned above, already stood to lose their credits in the near future (there’s a 200,000-vehicle-per-manufacturer cap), but the new tax bill would see the buyer incentive permanently removed, not renewed, as many had hoped. Such a move could slam the brakes on a still-fledgling segment in the U.S. (Read More…)

By on April 7, 2017

2017 Chevrolet Bolt EV

So far, there’s no evidence the Trump administration plans to extend the federal tax credit incentive for the purchase of electric and plug-in vehicles.

Designed to kick-start the fledgling technology, the credits — totaling up to $7,500 per vehicle — will run out after automakers finish selling their first 200,000 eligible vehicles — a date that could occur as early as next year for some companies. This means a segment still as embryonic as the infrastructure meant to serve it could soon bite the dust.

A recent report from Edmunds predicts what will happen if the credits die, using a cancelled state credit as a crystal ball. Despite the hype around EVs, those incentives are an intravenous bag keeping the patient alive. (Read More…)

By on November 16, 2016

2017 Chevrolet Bolt EV

Politicians walk back policy promises as frequently as Ram announces special edition 1500s, so it’s not unwise to take campaign pronouncements with a big grain of salt.

Environmentalists and those close to the electric car sphere aren’t happy right now, as Donald Trump’s ascendancy to the Oval Office could put the kibosh on green ambitions. There’s talk of a rollback of fuel economy targets, of California no longer being allowed to be “special” (at least, when it comes to auto industry regulation) — basically, the sky could be falling, but they aren’t sure if it is yet.

Let’s take that frenzied speculation to its natural conclusion. Say the sky falls, environmental regulations are left gutted like tuna on a wharf, and the government incentives to buy an electric vehicle dry up.

Can EVs stand on their own? (Read More…)

By on May 17, 2016

2016 Nissan Leaf, Image: Nissan

Electric cars take considerable flack from average consumers for being far too expensive in comparison to gas-powered competitors — and that’s before you realize it takes years to make that money back in fuel savings. Combine those two points with range anxiety and you’ve summarized the major hangups normal folk have with electric-vehicle ownership today.

The U.S. Federal government offers tax incentives, in the form of income tax rebates, to ease the monetary pain of EV ownership for average buyers. Individual states have joined the rebate incentive bandwagon, too. However, the state of Colorado is changing its tune, and will now gift you an incentive before you even drive off the dealer lot — no tax return required.

(Read More…)

By on October 7, 2015

BaseTDI1

Volkswagen lobbied hard in 2011 to receive the same — or higher — clean vehicle credits as electric cars, the New York Times reported Wednesday.

“They wanted a special deal for diesel cars that we now know weren’t even meeting the standard,” Margo Oge, a former director of the E.P.A. Office of Transportation and Air Quality, told the New York Times.

The LA Times reported that roughly $51 million in credits was paid by taxpayers in 2009 for diesel cars that lied about mileage and emissions — essentially a cheap bar trick.

(Read More…)

By on June 8, 2015

Nissan Leaf

Like the leaves in autumn, sales of the Nissan Leaf are falling amid a flurry of changes coming to the EV this summer.

(Read More…)

By on February 17, 2015

10352722_h15508358

Despite its visions of having a valuation on par with Apple within a decade, Tesla’s subsistence on subsidies may be hard for some to swallow.

(Read More…)

By on October 22, 2014

fisker-and-tesla-and-coda-georgia-electric-car-show

EV supporters in Georgia are gearing up to save the state’s tax credit from the chopping block after nearly losing it earlier this year.

(Read More…)

By on September 19, 2014

A general view of the Internal Revenue Service Building in Washington

In 2008, Congress passed a tax bill that would provide a credit of up to $7,500 for customers who purchase plug-in vehicles as a way to encourage adoption of cleaner vehicles. The credit would last in full for the first 200,000 units an automaker sold, then phased out over the course of 12 months.

The problem? The agency responsible for handling the credit, the Internal Revenue Service, has no clue as to where things stand as far as that cap is concerned, despite every automaker that sells a plug-in model reporting the figures every quarter, as required by law.

(Read More…)

By on May 7, 2014

tesla courtesy nicholas fleury via flickr

While most states and the United States government offer tax credits to consumers for purchasing an electric vehicle or plug-in hybrid, Connecticut instead offers dealers the incentive to sell EVs and PHEVs, a move research group Navigant Research claims could be more effective at bringing about greater adoption of the new technology.

(Read More…)

By on April 22, 2014

Model S - Tesla Motors China

Though Tesla is now just delivering new vehicles to China, CEO Elon Musk predicts his company will build luxury electric vehicles in the burgeoning market within the next three to four years.

(Read More…)

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