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Several Electric Vehicle Tax Credit Bills Have Been Proposed In The Past Few Weeks

Oct 17, 2018

Senator Dean Heller today proposed legislation that would lift the current cap on electric vehicles (EVs) eligible for the $7,500 federal tax credit. Under current law, once a manufacturer hits 200,000 EV sales, the tax credit phases out starting in the following quarter. This new bill would eliminate the individual manufacturer cap and begin to phase out the credit for the entire industry in 2022.

The legislation would immediately benefit two manufacturers– General Motors and Tesla– both of which have hit or will soon reach the 200,000-vehicle threshold. Supporters say the legislation will help make ALL electric vehicles more affordable for ALL customers. Opponents say the credit should be extended only for vehicles below a certain price.

Just last week, Senator John Barrasso proposed legislation to end the EV tax credit entirely and impose a new tax on EVs to fund highway repairs. And a few weeks prior to THAT, seven Democratic senators introduced legislation to lift the EV cap, extend it for 10 years and allow buyers to use the tax credit as a “point of sale rebate.”

NJ CAR will continue following these proposed bills.