The three automakers want their EV tax credit back.
If you haven't already placed an order for a Tesla Model 3, you won't be receiving the $7,500 tax credit that has been offered since 2009. The $7,500 tax credit goes away when an automaker sells 200,000 EVs, a mark which Tesla has surpassed and General Motors is also about to hit. Consumers certainly won't be happy about the $7,500 tax credit going away, as it will effectively make EVs more expensive to buy.
In order to combat this issue, Tesla has joined up with GM and Nissan to create the EV Drive Coalition. According to Automotive News, this new group has been created with the goal of convincing Congress to extend that EV tax credit in the US.
This will be no easy task, as Wyoming Senator John Barrasso has recently proposed a bill to kill of the tax credit entirely. Last year, President Trump also sought to eliminate the tax credit, though Congress voted to keep it. Legislation to modify the tax credit has been proposed in both chambers of Congress and could extend the expiring credits for GM and Tesla.
Nissan has also sold around 125,000 electric vehicles as of this year and could be in need of an extension soon. The extension could be granted during a lame duck session of Congress beginning next week.
The EV Drive Coalition is currently lobbying Congress to extend the tax credit. “A federal tax credit to help make electric vehicles more affordable for all consumers is integral to reaching a zero-emissions future and establishing the US as the leader in electrification,” said Dan Turton, GM’s vice president of public policy. “We feel that the tax credit should be modified so all customers continue to receive the full benefit going forward.”
Without a $7,500 tax credit, automakers could potentially struggle to sell EVs, which cost more than their gasoline-engined counterparts.