Republicans Throw EV Makers A Bone - Propose Lifting Cap On Tax Credits

On Thursday, Sen. Dean Heller, R-Nev., proposed legislation that would lift the current cap on electric vehicles eligible for tax credits. Reuters obtained a copy of the text of the previously unreported bill, which has not been posted on the Senate website.

Under current law, once a manufacturer hits 200,000 EVs sold, the tax credit phases out starting in the following quarter. Heller's bill lifts the individual manufacturer cap but would phase out the credit for the entire industry in 2022.

Agent009 - 10/17/2018 10:14:19 AM

+4 Boost

True, but consumers are not willing to pay for the technology at full price yet. As the economies of scale start to take effect then there will be less of a need for incentives.

MDarringer - 10/17/2018 10:55:47 PM

+2 Boost

If the technology is not ready, the government should not be bribing rich people to buy EVs. If you look at the average income of Tesla owners, these are people who can afford to pay the full price without the bribe.

zlives - 10/19/2018 6:44:32 PM

+1 Boost

gee, a senator asking for pork for his state... thats surely news.

rockreid - 10/17/2018 10:35:53 AM

-7 Boost

interesting that the proposal would phase out all EV programs by 2022.. that would mean late-comers like Audi, Benz, and BMW would likely not sell even 200k units to achieve the present threshold for phase-out. Guess it pays to be brave like Tesla and GM and be the first to market instead of the German way of R&D laziness, corporate greed via short term profits over long term EV tech, and Felony Fraud diesel scams.

PUGPROUD - 10/17/2018 11:11:03 AM

+2 Boost

While I get it there are so many areas where federal/state money could be better spent...public school education, trade schools, infrastructure, roads, bridges, debt reduction, health care, etc. Just saying...

rockreid - 10/17/2018 11:57:46 AM

-7 Boost

The Federal program is not a rebate. It is a currently $7500 tax writeoff. Many Republicans would argue that the government is simply giving back money that was “rightfully theirs” in the first place. You are not getting a check from the Federal Government. Numerous states have their own EV programs that do rebate money and write-off taxes.

Truthy - 10/17/2018 1:28:55 PM

+1 Boost

The intent of the EV tax incentive was to jump start the EV market. But there should be a time constraint too to make it fair. The innovators that jumped in early will have to compete with latecomers. If by 2022 the EV market is not sustainable, then there should not be incentives.

SanJoseDriver - 10/19/2018 10:32:15 PM

0 Boost

Agree.

SanJoseDriver - 10/19/2018 10:34:35 PM

0 Boost

The proposal seems fair. Kudos for a politician actually aiming for the middle to get something done. 3 years should be plenty for mass-market adoption... although it might not seem that way outside of major cities.

SanJoseDriver - 10/22/2018 12:10:07 AM

+1 Boost

I think fair would be dropping all incentives across the board for ICE and EV cars. That includes generous tax incentives for oil production that dwarf all the EV incentives combined. Let's see how many EVs are sold if gas goes to European prices.

carloslassiter - 10/20/2018 5:52:37 PM

+1 Boost

The gov wants electric cars just like they want autonomous driving. Both technologies make it possible for the gov to track your every move.
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The only solution I can think of is for you to continue hiding in your basement.

MDarringer - 10/20/2018 9:02:19 PM

+1 Boost

This is a rare moment of agreement. The government already knows your every move. Electric cars and autonomous driving aren't necessary to achieve an already achieved goal.

SanJoseDriver - 10/22/2018 12:12:10 AM

+1 Boost

Yup, that ship has sailed. FYI, you already have a device that tracks your every move and exact location at all times, and it's probably in your pocket right now.