Not Just Tesla: GM Is Reportedly About to Lose Its EV Tax Credit Too
According to a report from Reuters, General Motors sold its 200,000th electric vehicle in 2018. That's more than a round-number milestone. It's also the point at which the $7,500 tax credit the U.S. government offers to buyers begins to shrink and then disappear.
If the reports are true, then the tax credit for anyone buying an electric vehicle from GM will shrink to $3,750 in April, then $1,875 in October. Finally, the benefit will disappear entirely in April 2020. GM's quarterly sales report, which will confirm or dispute this report, officially drops on Thursday.
GM isn't the first automaker to hit the mark. Tesla crossed the 200,000 milestone in July of 2018, triggering a similar phaseout that was complicated by the Model 3's production and delivery status. The tax credit for buying a Tesla will hit zero in 2020 as well, barring the passage of a bill to extend the credit beyond the 200,000 unit cap.
As more manufacturers hit the 200,000-car limit, the varying levels of available tax credits are bound to confuse buyers and complicate their decisions. Lots of people holding out for the cheapest Model 3 will get a smaller credit, or none at all, by the time they pull the trigger. While Tesla and GM have hit their limits, Nissan has yet to do so despite years of selling the Leaf-but with credits shrinking or disappearing for Teslas and Chevys, Nissan is going to be an increasingly good bet.
So while electric vehicles are certainly taking off, the most immediate result might be that they get a little tougher to buy.
Source: Reuters
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