Photo: Novitec
Back in 2011, Barack Obama said in the State of the Union address that his administration wants one million electric vehicles on U.S. roads by 2015. For this purpose, the federal government had previously pledged a tax credit of $7,500 for the purchase of an EV with a few strings attached to the automaker in question.
Tesla sold the 200,000th electric vehicle last year, hence the reduction of the plug-in grant from $7,500 to $3,750. Then the federal government slashed that sum to $1,875 in July this year, only to be removed altogether this month.
December 31st is the final day for Tesla’s $1,875 tax credit, which means that both the Palo Alto-based automaker and its customers will be left to their own devices starting on January 31st, 2020. As long as you take delivery of your Tesla by December 31st, the $1,875 still applies to the Model 3, S, and the X.
In the case of the Model 3, the Standard Range Plus with the government’s incentive can be had for $38,115. The question is, will the Trump administration help automakers going forward in the name of eco-friendly credentials? The president doesn’t seem to, and House officials aren’t too fond of this possibility either, going as far as warning U.S. legislators of the repercussions.
Depending on which way you look at it, there’s no denying that the tax credit for electric vehicles can be considered a welfare program for the well-to-do car buyer. The Treasury Inspector General for Tax Administration has also found that the program’s management is pretty questionable, awarding millions of dollars in erroneous credits. In other words, a change was pretty much inevitable.
Jaguar, Audi, Mercedes-Benz, Volkswagen, and Hyundai are still treated to the $7,500 tax credit, as well as Nissan. Except for Tesla, only General Motors has surpassed the 200,000-vehicle threshold since 2010. Considering that the Chevrolet Bolt is the only EV you’d want from GM, we can’t say that The Big G is too affected by the phaseout.
December 31st is the final day for Tesla’s $1,875 tax credit, which means that both the Palo Alto-based automaker and its customers will be left to their own devices starting on January 31st, 2020. As long as you take delivery of your Tesla by December 31st, the $1,875 still applies to the Model 3, S, and the X.
In the case of the Model 3, the Standard Range Plus with the government’s incentive can be had for $38,115. The question is, will the Trump administration help automakers going forward in the name of eco-friendly credentials? The president doesn’t seem to, and House officials aren’t too fond of this possibility either, going as far as warning U.S. legislators of the repercussions.
Depending on which way you look at it, there’s no denying that the tax credit for electric vehicles can be considered a welfare program for the well-to-do car buyer. The Treasury Inspector General for Tax Administration has also found that the program’s management is pretty questionable, awarding millions of dollars in erroneous credits. In other words, a change was pretty much inevitable.
Jaguar, Audi, Mercedes-Benz, Volkswagen, and Hyundai are still treated to the $7,500 tax credit, as well as Nissan. Except for Tesla, only General Motors has surpassed the 200,000-vehicle threshold since 2010. Considering that the Chevrolet Bolt is the only EV you’d want from GM, we can’t say that The Big G is too affected by the phaseout.
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