Trump Administration Plans Electric Vehicle $7,500 Tax Credit Elimination
The proposed elimination of $7,500 tax credit could end up as a major setback for electric vehicle sales. Majority of automobile manufacturers are already offering electric cars with very low margin and market leader Tesla Motors is reporting loss each quarter. Tesla could face major trouble with sales if the government decides to eliminate tax credits.
The new tax plan rolled out by House Republicans would repeal $7,500 tax credits on electric vehicles after 2017 tax year. Automobile sector analysts believe that Nissan Leaf and Chevrolet Bolt would face much larger impact of elimination of tax credits. The impact will also be seen on Tesla sales but as the company deals in higher price range, the impact could be lower compared to affordable electric car segment.
Automobile companies have been shying away from investing in electric and green technologies. In order to push forward R&D and investments in electric vehicle segment, government subsidies play an important role.
Commenting on the issue, the Electric Drive Transportation Association said, "Today, the House Ways and Means Committee released tax reform legislation that includes repeal of the Section 30D Plug-in Electric Drive Vehicle tax credit."
General Motors released a statement, “Tax credits are an important customer benefit that can help accelerate the acceptance of electric vehicles. Because General Motors believes in an all-electric future, we will work with Congress to explore ways to maintain this incentive.”
According to an Automotive News report, German automaker BMW plans to discontinue its i3 all-electric compact car and i8 plug-in hybrid sports car ahead of introducing its next-generation electric vehicles (EVs).
Chinese electric vehicle (EV) start-up NIO is all set to deliver its first production vehicle to the market; and its first EV service center in Beijing is coming up right next to EV manufacturer Tesla’s service center.
According to reports, the electric-car sales system which is being adopted by China is similar to the one applicable in California.
The shares of the Silicon Valley-based electric-car manufacturer Tesla Motors plunged to a 52-week low this week, with the freefall of the company’s stock continuing on Wednesday.
In a recent announcement, New York-based startup Bollinger Motors revealed that it has efforts underway to bring its B1 all-electric utility truck to production. The startup announced that it has partnered with engineering firm Optimal, Inc.
In a move which underscores the scaling back of Indian government’s efforts to switch to electric vehicles, the country’s 2030 target for electric vehicles has been revised downward from 100% to 30% by the government led by Prime Minister Narendra