Kill the Electric Car Again? Not on Our Watch
11.03.2017 - by Mary Kathryn Campbell
Kill the Electric Car Again? Not on Our Watch

Update Friday, November 10, 2017

We won one battle, but the fight to save the electric car is far from over

Thousands and thousands of EV Drivers took action last week and this week to help save the EV tax credit in Congress. Thanks to urgent appeals from Plug In America’s EV driver network, the Senate left the credit out of its version of the tax plan. But the fight is far from over. Once the tax packages pass both the House and Senate Chambers, the two Chambers must resolve the differences between both tax packages (in a process called conferencing), and the House could propose the cut again. Congress is aiming for the conference to take place in December.

We can’t rest on this victory just yet. Both chambers of Congress still need to hear from us, loud and clear: Americans will stand up, and we will save the electric car.

Join Plug In America today, and help protect the critical tax credit from the chopping block.

Both chambers of Congress still need to hear from us, loud and clear: Americans will stand up, and we will save the electric car.

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Congress this week proposed eliminating the $7,500 federal tax credit for electric vehicles. This will significantly hurt the electric car market, as EVs

make up less than 1% of light-duty vehicle sales in the U.S. This federal tax credit is a key incentive that helps consumers make the switch to driving electric. Plug In America is calling upon all EV drivers and people exploring purchasing or leasing an EV before 2018 to step up and help defend this critical incentive. First, we need to dispel some myths.

Myth #1: The credit only benefits rich people.
The tax credit states that qualifying new EV purchases are eligible for a base tax credit of $2,500, plus an additional amount based on the battery capacity of the vehicle, not to exceed $5,000. So, depending on the EV you’re purchasing, you might not get the full $7,500. The full benefit of the credit really depends on what you choose to drive, not on how rich you are.

The credit also applies to leases, reducing the cost of electric cars for low and middle-class consumers, many of whom live in areas where clean air is needed the most.

Myth #2: This is government interference in the marketplace.
To help nascent industries, it’s normal for governments to step in and assist industries as the industry matures and moves into the mass market stages. This is why the EV tax credit was passed in the first place, back in 2008. The current EV tax credit also has a cap on when it will phase out. Once a vehicle manufacturer has sold 200,000 EVs of any make or model, the credit will begin to phase out over the course of a year to 50% of the full credit amount, followed by a step down to 25% and then zero.

The credit also contributes to a strong EV market, which keeps the U.S. competitive in the technology and innovation sectors with countries like China and the European Union. A repeal of the EV tax credit would essentially hand the leadership on EVs to China.

Myth #3: Eliminating the credit helps the taxpayer as part of the H.R. 1 package
There’s absolutely no need to end the credit now. If anything, for all the benefits that EVs provide – fuel savings for consumers, technology and innovation leadership in the U.S., electric grid benefits, clean air, reduced healthcare costs, improved national security – Congress should be talking about an extension or expansion of the credit.

You can help make a difference. Take action and contact your Representative and Senators, NOW.

…for all the benefits that EVs provide – fuel savings for consumers, technology and innovation leadership in the U.S., electric grid benefits, clean air, reduced healthcare costs, improved national security – Congress should be talking about an extension or expansion of the credit.

7 comments on “Kill the Electric Car Again? Not on Our Watch”
  1. Robert says:

    EV’s are in a much better place then they were just ten years ago (thank you Elon). Tony Seba says when the cost of an EV is equal to its ICE counterpart it is the end of ICE vehicles. Add greater range per charge and more plug in stations and you got an automotive revolution. I don’t think Trump will kill the Electric Car only slow it down. He is not going to prevent the transition to renewables and their storage batteries (thank you Elon) but only delay it at most. He is not going to bring back coal either. It is dirty, expensive compared with natural gas and renewables and so 19th century. Steam engines are gone, horse and buggy are gone, and so will ICE vehicles and coal.

  2. Bonnie Rozean says:

    I’m writing this to implore that the EV tax credit remain in place. Renewable energy is our country & the world’s future. In June of 2016 my husband & I purchased a Nissan Leaf which we charge primarily using our 2.6kW solar system. My husband’s employer also has charging stations where he works. Between the solar on our rooftop & our EV we are reducing our carbon footprint enormously while saving our hard earned dollars. Solar & EV are attainable for the middle class. If you really want to support the middle class in this country then please step up & lead by allowing this tax credit to remain. Thank you for doing the thoughtful research & promoting our country in a positive light by supporting the renewable energy sector.

  3. Carolyn Trupti Israel says:

    The electric car and accompanying infrastructure seems to be propelling us forward in ameliorating climate change. Also, we must reinstate rails; light rail in and around cities and high-speed rail to supplant air travel. Both done with renewable energy sources– solar collectors between the tracks or….

  4. Carolyn Trupti Israel says:

    Do not increase the deficit for billionaires and multi-national monopoly corporations only. If you increase it for regular people, it increases the “economy” by creating more purchases/sales. Giving billionaires gifts (like eliminating the estate tax) absolutely does NOT increase the economy. More $ in foreign banks, more jobs out or the U.S., into foreign countries.

  5. Dani McLean says:

    If you want to show how America fails at yet another facet of modern national development, on top of our shameful gun policies, environmental (un)regulation, lack of universal health care, rampant sex discrimination in every facet of policy and politics, and the War on Drugs – go ahead, remove this tax credit, and ensure that we will be behind every other nation on this planet (as if we aren’t already far enough behind…) in regards to public health, clean energy and energy independence, including China. How disgraceful.

  6. L Dickson says:

    Colorado is one of the fastest growing states to adopt and purchase electric vehicles. The transition to zero emission vehicles is happening and the $7,500 tax credit has made the adoption to new EV technology affordable. In our small town in rural Colorado, in just 5 months, the community bought 50 EV’s, Why would you hamper the development of technology that is here to stay and the direction of transportation is headed? While Europe and China advance to 100% electric you consider removing incentives that have clearly have encouraged clean transportation. Don’t remove the $7,500 tax credit!

  7. Vijay says:

    Dear Mr. Trump. I thought you were in the win business. Removing this credit would knock the wind out of sector of the economy that is just starting to hit its stride. Do you want America to play second fiddle to China on yet another thing?

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