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GM' s EV Tax Credit Is About To Run Out
Oct. 26, 2018 7:00 PM ET by Jared Rosenholtz Industry News / 5 Comments How will the company fare without a $7,500 EV discount? If you buy an electric car in the United States, you are entitled to a $7,5000 tax credit. The credit was put in place back in 2009 as a way to help boost EV and plug-in hybrid sales. However, the credit only remains in place up until an automaker sells 200,000 EVs or plug-in hybrids. Automakers like Tesla are starting to blow past this number thanks to strong sales of more affordable cars like the Model 3. After an automaker hits 200,000 sales, the incentive drops by 50% until it is ultimately phased out. Tesla was the first automaker to have to worry about this happening, but Green Car Reports says that GM will have cause for concern as well. Chevrolet Chevy Chevrolet GM is on pace to reach 200,000 deliveries by the end of this quarter. Based on the rules of the credit, this means GM EVs and plug-ins will only be entitled to a $3,750 tax credit as of April next year. That will remain for two quarters, before dropping to $1,825 for two more quarters and then disappearing entirely. Unless the law is updated, this means if you are in the market for a Chevy Volt or Bolt, you will only receive a $3,750 credit after April and a $1,825 credit after October of 2019. Chevrolet Chevrolet The US government is looking to kill off the credit entirely, but with several automakers set to reach the 200,000 delivery mark anyway, it seems like killing it would be waste of time. After GM, Nissan will be the next carmaker to hit the 200,000 number, though Nissan doesn't have any plug-in hybrid models to speed up sales. Toyota could also catch up, with the Prius Prime now outselling the Chevy Volt. GM hopes it can advocate for the continuation of the tax credit. "We feel the tax credit should be modified so all customers continue to receive the full benefit," said Jeannine Ginivan, GM's public policy spokesperson. "We look forward to working with members of both the House and Senate to find a bipartisan solution that works for everyone." Chevrolet Chevrolet Chevrolet Join The Discussion
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Chevrolet Bolt EV Jared Rosenholtz Editor-at-Large After graduating with an MBA, Jared pursued his love of cars by becoming an automotive journalist. An internship with CarBuzz grew into his current position as Editor At Large. Jared now spends most of his time evaluating new vehicles and chasing the latest news stories in the automotive industry. When he’s not attending Cars & Coffee events on the weekend, Jared loves to watch NFL football and cruise around with the top down in his German convertible. Contact Jared @Carsnbites @jar_rosenholtz LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top