Wednesday, February 28, 2024
News Attempt At Raising Ceiling For Federal EV Tax Credit By Tesla And...

Attempt At Raising Ceiling For Federal EV Tax Credit By Tesla And GM Has Failed

Critical Federal EV Tax Credits can make or break EV sales volumes leaving many to wonder about the near future.

  • The Federal EV Tax Credit is limited to 200,000 sales for any automaker.
  • Manufacturers attempted to raise the ceiling to 600,000 units.
  • A few other OEMs will shortly reach 200,000 units such as Nissan.

Only yesterday did we report disappointing sales numbers of EVs in Ontario following the Ford Government’s decision to cut provincial incentives altogether the moment it took power. In this round, Tesla and GM failed in their attempt to convince the Trump administration and Congress to raise the imposed ceiling on the number of tax credits awarded to electric cars.

In the US, the EV Tax Credit per sale for a manufacturer is capped at 200,000 units. The credit itself is in the amount of $7,500 which is considerable, and not so much at the same time. Many States, much like individual Provinces, also offer various credits when purchasing EVs but experts expect that EVs sales are likely to decline for the currently affected companies.

Forbes sites an interview with Tom Pyle, president of the American Energy Alliance, had with Bloomberg: “President Trump is fighting to protect middle class taxpayers by opposing the welfare program for the wealthy,” This argument is identical to that of Ontario’s government.

Tesla and GM reached their allowance limits but going forward, Nissan is likely to be next to reach the threshold followed by Ford. With most OEMs planning on converting part or all of their fleet to electric, a drop in sales could seriously hurt their efforts.

So many questions arise from these debates beyond governments helping out those who can afford $40,000-$50,000 cars and one of them is whether or not said governing bodies should indirectly support or subsidize car companies with tax-payer money.

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Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

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