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VT Congressman files bill to extend EV tax credits

July 5, 2018 1 Comment

Congressman Peter Welch (D-Vermont) has filed a bill to extend federal electric vehicle tax credits for ten more years as credits begin to run out for Tesla and General Motors, the two largest EV manufacturers.

According to the tax-credit law, after the automakers sell 200,000 EVs, the credits for the cars start to phase out. Both Tesla and GM are expected to hit the 200,000 cap this year, and Tesla may have already reached it.

EV sales are counted quarterly. Once the cap is reached, buyers can keep claiming the full credit for the rest of the quarter plus one more quarter after that. Following that, consumers who purchase an EV in the next six months can claim a half-credit, and consumers for six months after that can claim a quarter-credit. After that, the credits for that automaker’s EVs disappear.

Consumers buying EVs from other automakers could still claim the full credit.

Offering generous tax credits to wealthy Tesla buyers has been controversial, and other luxury automakers have EVs coming this year.

Welch’s bill would eliminate the 200,000 vehicle cap and extend the tax-credits to an unlimited number of EVs in the next ten years. It would also reinstate credits for buying home-charging stations, which expired at the end of 2017.

The bill, with two Democratic co-sponsors and no Republican support, is on its way to the House Ways and Means Committee. Parallel legislation, sponsored by Senator Jeff Merkley (D-Oregon), is expected to be introduced in the Senate.

About the Author:

Dave Martinson is a broadcast journalist for DrivingSalesNews. He has a background as a TV News Reporter, Anchor and Producer. He has also worked in Digital Marketing and Human Resources. He received his bachelor’s degree in Communication from Brigham Young University – Idaho. He’s married and originally from the state of Washington. He’s a huge football fan and enjoys the outdoors.

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