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Breaking News:

U.S. Crude Oil, Gasoline Inventories Boom

U.S. Tax Bill Keeps EV Incentives

The compromise Republican tax bill retains the $7,500 electric vehicle tax credit, dropping a previous proposal by Republicans in the U.S. House of Representatives to eliminate the incentives.

The compromise tax bill, released late on Friday, follows the Senate version of the bill and doesn’t eliminate the tax credits on EVs—a move that would have hurt carmakers such as Tesla, Nissan, GM, or Volkswagen.

Under current tax legislation, buyers of plug-in electric vehicles are eligible for a $7,500 tax credit to defray the cost of those vehicles.

The federal Internal Revenue Service (IRS) tax credit is for $2,500 to $7,500 per new EV purchased for use in the U.S. The size of the tax credit depends on the size of the vehicle and its battery capacity. This tax credit will be available until 200,000 qualified EVs have been sold in the United States by each manufacturer, at which point the credit begins to phase out for said manufacturer.

“We are extremely pleased that members of the conference left in place the consumer credit for plug-in electric vehicles with the agreement for H.R. 1,” the Electric Drive Transportation Association (EDTA) said in a statement after the compromise tax bill was released.

Related: IEA Dashes Bullish Sentiment In Oil

“This credit supports innovation and job creation while helping drivers access advanced vehicle technology. Keeping the plug-in vehicle credit in place is the right policy for consumers and for the nation. We appreciate the conferees’ support and will continue to work with Congress to advance U.S. competitiveness through electric mobility,” EDTA said.

Prominent Republican lawmakers said on Sunday that they were confident that the bill would become law by the end of this week, with a Senate vote expected as early as on Tuesday, and U.S. President Donald Trump signing the bill into law by the end of the week.

By Tsvetana Paraskova for Oilprice.com

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  • Joe on December 19 2017 said:
    I hope everyone understands it’s not $7500 of free money. You instead get a tax break such that you don’t pay Federal income tax on the $7500 you use to help purchase the car.

    Joe

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