U.S. Bill To Boost EV Tax Credits Could Rev GM, Tesla

[Vlad Kovalenko + 115]

Congress introduces a bipartisan bill  that will increase the reach of an existing electric vehicle tax credit. The bill will increase the electric vehicle tax credit enjoyed by electric vehicle car buyers to 400,000 vehicles per manufacturer. Two of the biggest beneficiaries will be Tesla and General Motors.

The existing $7,500 EV tax credit, which allows taxpayers to deduct part of the cost of buying an electric car, phases out over 15 months once an automaker hits 200,000 cumulative EV sales. GM saw its tax credit cut to $3,750 on April 1. Tesla’s tax credit fell to $3,750 on Jan. 1 and will end entirely at year’s end.

The bill dubbed the “Driving America Forward Act” would grant each automaker a $7,000 tax credit for an additional 400,000 vehicles on top of the existing 200,000 vehicles eligible for $7,500 tax credits. It would shorten the phase-out schedule to nine months.