With the tax credit running out, now may be the time to buy an EV.
General Motors has been capitalizing on Tesla's production woes by selling as many Bolt EVs as it can muster. The Bolt is a bit pricier than the base Tesla Model 3 (which isn't available yet), but qualifies for a $7,500 federal EV tax credit, effectively bringing the $37,495 price down below $30,000. The tax credit may be a big reason why Bolt sales have been strong, but its future is in question. President Trump expressed interest in scrapping the credit, but the US government decided against that for now. Even so, the credit won't last much longer.
The EV tax credit was created to help automakers sell electric cars, and it was designed to go away after companies sold a certain number of them. This is why many Model 3 owners who receive their car late in the production run likely won't receive their $7,500 credit. Likewise, MotorTrend reports Bolt sales are nearing 200,000 units, at which point the EV credit will run out. “Our forecast will put us probably third quarter,” Steve Majoros, Chevrolet’s head of cars and crossovers, said to reporters. “So if you were to run down the walk-down, that would give us the third and fourth quarter of this year at the full tax credit.” Majoros points out that the credit only goes away two quarters after the 200,000 unit threshold.
Once the credit does run out, the Bolt will end up costing the full $37,495. For now, interested customers who are looking to buy a Bolt should pull the trigger, because the tax credit will likely be reduced to $3,750 by the end of 2018.