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Senate Tax Proposal Preserves EV Tax Credit

Senate Tax Proposal Preserves EV Tax Credit

Republican leaders in the U.S. Senate have revealed their own proposed tax overhaul that preserves the electric vehicle tax credit. The Senate take on tax policy is a reversal from the U.S. House of Representatives plan, which cuts the EV tax credit.

Currently buyers of qualifying plug-in and battery-electric vehicles are eligible for a $7,500 federal tax credit for their purchase. The credit is often seen as a major attraction to drawing buyers to alternative energy vehicles, while automakers often claim the tax credit is still imperative to increasing adoption of these vehicles and subsidizing their high cost.

After news broke that the U.S. House plan eliminated the tax credit, automakers and utility companies began to lobby against the move. It isn’t clear if their mobilization ultimately swayed Senate Republicans to leave the tax credit in their proposal.

Regardless of changes to it, the full tax credit is only offered on the first 200,000 qualifying vehicles an automaker sells. After the 200,000, the amount of the tax credit recedes until it ultimately becomes zero.

 





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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