GM, Tesla, and Nissan are teaming up with some other big EV players. The new coalition is targeting getting the federal EV tax credit extended.
The $7,500 per vehicle incentive is a big part of the current successes of mainstream EVs. But the credit starts to wind down as each automaker hits 200,000 EVs sold. Tesla has already hit that mark and GM is expected to hit it soon. Nissan has topped 125,000 sold.
Last month, a senator introduced a new bill to not only have the tax credit removed but to actually increase the amount that EVs are charged. Just days later, another senator proposed a bill that would do the opposite. Extending the incentive to 2022 and having the vehicle cap removed.
But in the last week, things have changed in the U.S. government. The Democrats have control of the House, and the Republicans, who proposed both of last month’s EV bills, have expanded their Senate majority. Enter some serious lobbying from the players in the EV market.
SEE ALSO: Republican Bill Proposes Lift To Electric Car Tax Credit Cap
“The EV Drive Coalition is supportive of any effort to reform the EV tax credit in Congress provided that the legislation Embraces the economic and environmental promise of EV vehicles. Gives consumers the freedom to decide which model EV they want while providing continued affordability. Lifts the per-EV manufacturer cap in the current tax credit so that future caps neither penalize market leaders nor shut out later arrivals to the EV market. (And) Allows the credit to sunset once the nascent EV industry has had additional time to mature and grow,” it says on the coalition website.
The EV Drive Coalition includes not just the three automakers but also charging companies like ChargeEVC, Chargepoint, Volta Charging, and Plug In America.
“Arbitrary constraints with the federal credit limit consumer options and make it harder for consumers to purchase the cars they want,” Joel Levin, Executive Director of Plug In America, said in a statement. “Lifting the cap would create a more level playing field for all manufacturers, giving consumers the freedom to decide which car they want in a free and fair market.”
They say that the current cap system gives a bigger boost for late adopter manufacturers and foreign automakers looking to enter the U.S. market than to those currently selling EVs. Since the new players will be able to take advantage both of the lowering of EV costs that’s happened in the last few years and a full 200,000 vehicle incentive.
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