Vermont Congressman Seeks to Extend $7,500 EV Tax Credit
The $7,500 federal EV tax credit will soon begin to wind down for manufacturers such as Tesla and GM when they reach the point of delivering 200,000 electric vehicles in the US.
Under the current law, the full $7,500 tax credit will be available for a particular manufacturer’s cars through the end of the quarter in which the 200k EVs milestone is reached and also through the following quarter. Then, all the plug-in vehicles sold by that manufacturer will be eligible for 50% of the vehicle credit for two more quarters. The credit then goes down to 25% for two quarters and then it completely goes away for that manufacturer’s vehicles.
Rep. Peter Welch (D-VT) has introduced a bill to eliminate the per manufacturer cap and make the credit available to an unlimited number of EV buyers for the next ten years.
H.R.6274 – To amend the Internal Revenue Code of 1986 to extend certain tax credits related to electric cars, and for other purposes, is co-sponsored by Rep. Jared Huffman (D-CA) and Rep. Jacky Rosen (D-NV). The bill has been referred to the House Committee on Ways and Means. A Senate version of the bill is expected to be filed by Sen. Jeff Merkley (D-OR).
Congressman Welch unveiled the legislation Friday at an EV charging station at City Market in Burlington, Vermont. “Transportation is the single largest contributor to greenhouse emissions in the United States. It is urgent that we transition to cleaner, more efficient modes of transportation. My legislation will make electric vehicles and their charging stations more affordable, while saving Vermonters money at the gas pump and reducing their environmental footprint,” Welch said. “We are in a race for the winner of the technology for electric vehicles and this credit is going to help spur that.”
The legislation will allow plug-in electric vehicle buyers to receive the credit immediately rather than having to wait until they file their income tax return. The bill also revives a federal tax credit to purchasers of electric vehicle charging stations.
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