Tesla and GM will once again be able to count on $7,000 in tax credits that their customers will receive for the purchase of an additional 400,000 electric vehicles produced for the U.S. market.
A new reform of the federal electric vehicle incentive program being proposed by President Joe Biden’s administration offers a similar opportunity.
Recall that the named manufacturers have already exhausted the previous tax incentives that were in effect for the first 200,000 electric cars sold for each of the companies. Now, after the arrival of a more green-loving president, the current government intends to renew the incentive programs by formally introducing the Renewable Energy Sources Act. The law is intended to reform the federal tax program for electric cars, as well as other programs concerning renewable energy.
According to preliminary information, automakers who have already reached the threshold of 200,000 electric vehicles sold will receive a $7,000 tax credit for an additional 400,000 electric cars, which will remain in effect until a new phase-out period begins.
The bill is in the review process at this point, but it is very likely to pass.