A bipartisan group of US lawmakers will introduce legislation on Wednesday to expand the tax on electric vehicle by 400,000 cars per manufacturer, a provision that gives General Motors Co, and Tesla Inc a boost before the existing credit comes to an end for them.
According to Reuters, the new law sponsored by Democratic Senators. Debbie Stabenow and Gary Peters, Republican Senator Lamar Alexander and Susan Collins and Democratic Representative Dan Kildee, to sponsors of the project before it was officially presented.
The bill could raise sales of electric cars in a boost to automakers that have spent tens of billions of dollars to meet growing emission requirements.
The current tax credit is US $ 7,500 and taxpayers are allowed to deduct part of the purchase cost of the electric vehicle and are phased out over a period of 15 months once the automaker has reached 200,000 EV cumulative sales. General Motors saw its tax credit cut to $ 3,750 on April 1. Tax credit for "Tesla" fell to $ 3,750 on January 1 and will expire fully at the end of the year.
The new law, called the "Driving America Forward Act," will grant a $ 7,000 loan to every automaker for an additional 400,000 cars and 200,000 current vehicles eligible for $ 7,500. The phase-out schedule will be shortened to nine months.
The bill also extends the hydrogen fuel cell credit until 2028. It is estimated at $ 11.4 billion with all but $ 91 million of the amount to extend the VAT credit.
The proposal has strong support from environmental and other car manufacturers.
The White House had proposed canceling the $ 7,500 tax bill immediately last month, a move it said would provide the US government $ 2.5 billion over the next 10 years.
The new law is powered by the largest companies in the automotive industry including GM Tesla Toyota Motor Corp. Ford Motor Co Fiat Chrysler Motors Nevada Honda Motor BMW A Nissan Motor Co Volkswagen AG and utilities.
General Motors President Mark Rios said in a statement, "EV Tax Credit provides customers with a proven incentive as we work to establish the United States as a leader in electrification".
"As we build and grow a clean energy economy, we must continue to invest in addressing the sector that generates the greatest amount of pollution: transportation," said Michael Brown, CEO of Sierra Club.
Both GM and Tesla have been lobbying Congress for more than a year to expand or expand the EV tax credit.
Source: Reuters
Comments
Post a Comment