EV Tax Credit May Not Be Scrapped After All

The EV tax credit offered to consumers in the United States might not be scrapped after all.

Last week, House Republicans proposed the removal of the tax credit on December 31st this year. However, South Dakota Republican Senator John Joeven has informed the Financial Post that a revised version of the tax bill proposes to retain the $7,500 credit.

The tax credit is believed to be a significant factor as to why sales of electric vehicles are on the rise in the United States. Despite this, few carmakers have made much of an effort to retain the credit throughout discussions this week.

The reason for this, as Automotive News notes, is quite simple. Under the new tax bill, the corporate tax rate would fall from 35 per cent to 20 per cent, essentially gifting major automakers tens of millions of dollars every year. Eager to see such a tax cut passed into law, companies appear to resistant to also call for the tax credit to be retained.

In fact, in a letter from a Ford spokeswoman Christin Baker, no mention was made about attempting to keep the credit.

“Our focus in tax reform is on key elements that will help put American companies on a level playing field globally. We will continue to promote electrification through other policy initiatives.”

While some carmakers are remaining quiet on the potential changes, a handful of U.S. utility companies insist on the credit remaining in place.

“We support credits and incentives, and see them as a key piece of the equation when it comes to fostering the continued growth and development of the market for EVs, along with the continued build out of charging infrastructure,” a spokesman from California’s largest utility firm, PG&E, said.


  • MarketAndChurch

    Yeah, we’re subsidizing something that most people in the market for a car don’t care for.

    Even with these subsidies, the market for EV’s is still hovering over half a percent…

    Were this to die tomorrow, nobody would notice or care.

    I care about it. I want my next car, the upcoming Escape Hybrid, to be around 30k.

    But I’m in such a small minority of car buyers that it wouldn’t even be fair to categorize me as a niche.

    That’s how small EV car sales are in the US.

    • Bash

      I see your point, Agree with it. But again i would love for my next car to be an EV charger SRT with some sort of ludicrous mode or something (thats would be a dream now!), but that would be great, but hey I’m could be a minority too.

      • MarketAndChurch

        I’m too poor to afford a used Tesla Model S, but that would be my dream EV.

        These kinds of cars don’t deserve a subsidy because they’re luxury performance cars, but a subsidy would be nice, or if they found a way to bring the technology down enough to make them affordable in the first place.

        • Bash

          And regardless of what they say, this is still too far away to be seen, i believe (and regardless of the amazing amount of technology and great engineering) those current EVs are still like those early type writers (arguably).. and it requires quite some time to reach the level of an say -average Laptop-!

  • Moveon Libtards

    So first you attacked President Trump for scapping the EV taxpayer handout/ credit…But now are saying President Trump might not do it after all (or how you might have finally realized it is CONGRESS that decides, not the President!!!)??????!

    Talk about the typical left-wing rush to judgement and sad propganda. PLEASE EDUCATE YOURSELF BEFORE YOU GO AHEAD AN MAKE ACCUSATIONS. Also, nothing in your new article proves the taxpayer handouts to big corporations won’t be scrapped…Just pure speculation and bias reporting.

    • Moveon Libtards

      The American people are tired of funding the smoke and mirrors pipe dreams of Tesla with hundreds of millions of hard-earned taxpayer dollars to fun rich billionaires like Elon Musk who obviously do not know how to run a car company (Mr. Musk can’t even figure how to weld!) that is bleeding $16 million A DAY, stock dropping, debt up to their eyeballs, top engineers leaving in droves, people getting let go because no money left, and now another 100+ person lawsuit against TESLA for racial discrimination.

  • Moveon Libtards

    Funny how Brad forgot all about the bombshell new racial discrimination lawsuit just filed by Tesla employees. Funny how another “Tesla is the greatest!” article comes out when their is bad new once again for Tesla.

  • Moveon Libtards

    Toyota just said, as reported by Battery Bradley, that ICE engines will still be around until 2050!!! A nother 32+ years!!!! hahahahahaha

    Wait, I though Toyota and Battery Bradley said eletric only is around the corner and others are stupid? Wasnt it only 5 years from now? Just like we were told oil would definitely run out by now…Yup, sure, uh-huh…

    What a “bold” prediction from Toyota…Tell us something will happen, oh, over 30 years from now and not have anyone around by then to fact check them. Free publicity to boot.