New bill proposes changes to country’s EV incentive structure
A new bill has recently been introduced in the Congress for official removal of the ‘200,000 delivery threshold’ for electric vehicle (EV) car manufacturers. The threshold puts an EV maker at a disadvantage because its buyers cannot eventually avail EV incentive in the US market.
The EV incentive structure in the US takes the form of a $7,500 tax credit, and is therefore not a direct discount on EV purchase. The incentive is capped at a limit of ‘200,000 vehicles per manufacturer’, and once an automaker hits the threshold, the federal tax credit for its buyers is phased out over a period of one year.
An effort to change the EV incentive structure and remove the ‘200,000 delivery threshold’ was launched earlier this year. As a result of the effort, a new bill -- H.R.6274 -- was unveiled in Congress by Rep. Peter Welch (D-VT) last Friday.
The new bill not only proposes the removal of the delivery threshold for EV makers, but also recommends the replacement of the threshold with a ten-year limit for EV incentives. It also proposes that the tax credit system should be changed to a direct rebate on EV purchase.
The introduction of the new bill comes at a time when Tesla Motors is moving closer to hitting the 200,000th delivery threshold in the US this quarter. Tesla will be the first automaker to hit the threshold, with General Motors (GM) likely to follow it.
Tesla Motors CEO Elon Musk has recently confirmed that a new Autopilot interface will be released by the automaker as part of the upcoming Version 9 of the over-the-air software update which is scheduled for a rollout this summer.
German automaker BMW has revealed in a recent announcement that it will be producing its electric Mini in a new factory in China. The electric Mini will likely be launched in 2019.
French automobile manufacturer PSA Group has revealed in a recent announcement that the company is advancing its electrification efforts by setting up a new Low Emission Vehicles Business Unit.
The new Nissan Leaf electric vehicle (EV) is apparently on its way to set an all-time sales record in Norway this month!
On Thursday, French automaker Renault announced that it has earmarked an amount of more than 1 billion euros ($1.2 billion) for investment in its home country, with the objective of accelerating the production of electric vehicles (EVs).
According to an official press release, Siemens and Volkswagen Group’s Swedish subsidiary Scania have received the go-ahead for a research project in Germany.