Tuesday, December 6, 2022
News Automakers Ask US Congress to Lift EV Tax Credit Limits

Automakers Ask US Congress to Lift EV Tax Credit Limits

The automakers fear that Republicans will crush any hopes for an EV tax credit cap removal

  • Currently, the full federal EV incentive phases out after 200,000 are sold.

  • GM, Ford, Stellantis, and Toyota jointly reached out to Congress.

Costs are increasing for everything including automobile production. Automakers are feeling the crunch and want to limit the impact economic pressures and supply chain constraints can have on pricing. This is why GM, Ford, Stellantis, and Toyota have asked Congress in a joint letter to remove the EV incentive cap.

The Federal government currently grants a tax credit of up to $7,500 on the sale of new EVs, up to a maximum of 200,000 sales. GM and Tesla have both crossed that threshold while others like Ford and Nissan are closing in.

2023 Chevrolet Bolt and Bolt EUV get Price Cuts

The automakers have asked for the cap to be lifted and render the credit available for a while yet. The letter states: “We ask that the per-(automaker) cap be removed, with a sunset date set for a time when the EV market is more mature,” as reported by Reuters.

The timing of the letter is motivated by the growing concerns that Republicans, should they retake control of one or both houses of Congress next year, will cut them out altogether. Even so, some Democrats no longer see the use of these incentives.

Senator Joe Manchin, a Democrat, said: “There’s a waiting list for EVs right now with the fuel price at $4. But they still want us to throw $5,000 or $7,000 or $12,000 credit to buy electric vehicles. It makes no sense to me whatsoever,” Manchin said. “When we can’t produce enough product for the people that want it and we’re still going to pay them to take it — it’s absolutely ludicrous in my mind.”

A $12,500 tax credit was proposed by the Biden administration last year.

Trending Now

Tesla is Preparing a Facelift for the 2024 Model 3

This update will be similar to the one made to the Model X and the Model S in 2021. The interior is expected...

Volkswagen Group’s First North American Battery Plant Could be in Canada

The automaker’s PowerCo battery subsidiary said it is now looking at potential sites in Canada for a new battery plant. VW’s partner, Umicore,...

Video: Hyundai shows the future of N

The motorsport division is trying to improve handling with its future N branded cars. The Hyundai Ioniq 5 N will be the brand's...

More power and more range for the 2024 Volvo C40/XC40 Recharge

The 2024 model year will switch to a RWD setup. Expect more power and more range. Will Polestar follow Volvo with the 2?   It...

The Second Generation of the Volkswagen ID.3 will be Unveiled Next Spring.

Due to delivery delays, orders placed starting now will be for the updated model. This is likely only a refresh of the current...
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


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.