As you may know, the $7,500 federal EV tax credit begins phasing out for an automaker’s vehicles once they have sold 200,000 electric vehicles. Tesla and GM have already hit that cap, while Nissan and Ford have surpassed the 100,000 mark.
Plug In America continues to advocate for modifying the $7,500 federal EV tax credit to work for more consumers for a longer period of time. Last month, we sent out action alerts to members of House Ways and Means Committee and Senate Finance Committee. Plug In America supporters urged legislators to add an extension of the tax credit on to the budget deal. Thank you to everyone who took action! We greatly appreciate your voices.
Many offices are now well aware of the need to extend the EV tax credit. Unfortunately, there were still hurdles blocking our success, including disagreement amongst the automakers as to what the modification of the tax credit should look like.
Our next chance to modify the tax credit may be with the reauthorization of the Surface Transportation Act (FAST Act) or with a transportation infrastructure package later this spring. We educate offices and express the urgency for lawmakers to take action now on the tax credit.
The EV market is still in the transition phase from the early adopters to the mass market phase. Consumers need support to make the switch to driving electric until EVs reach price parity with their gas counterparts. Stay tuned for more news at the federal level and be sure you’re signed up for our action alerts!