General Motors has hit a total of 200,000 electric vehicles sold in the United States by the end of 2018, reaching a threshold that has resulted in the gradual abolition of a federal tax benefit of $ 7,500 over the next 15 months, according to a source.
The largest US automaker had touched that number in the Q4 of 2018, which means that credit will fall to $3,750 in April and $ 1,875 in October for a six-month period. The credit will fade away totally in April 2020. The amount of 200,000 euros covers the cumulative sale of GM electric vehicles since 2010.
The tax credit is projected to cover up the cost of more expensive electric vehicles than equivalently sized vehicles for internal combustion engines. In 2009, Congress set the tax-credit phase-out limit to 200,000 vehicles per manufacturer. GM, which previously said it anticipates attaining 200,000 sales by the end of 2018, declined to present their statement before quarterly results were announced on Thursday.
GM and Tesla Inc., which reached 200,000 in July 2018, made Congress to extend the existing tax credit or suspend the cap. The tax cut for Tesla electric vehicles slumped to $3,750 on Tuesday and Tesla announced a $ 2,000 cut in the price of its electric vehicles to partially offset the reduction in the tax credit.
In March, GM CEO, Mary Barra convened the conference to expand tax credits for electric vehicles as the company boosted EV Bolt’s output in response to consumer demand. She repeated her request last month during a visit to the Capitol.
GM announced in November that it is doubling the resources allocated for the development of electric and standalone vehicles as part of a major restructuring that involves the end of production at five factories in North America. GM also announced plans to halt the production of the plug-in hybrid Chevrolet Volt until March.
In November, a conference report reported that 57,066 taxpayers had requested $ 375 million in tax credits in 2016. Congress estimates the cost of the tax credit at $ 7.5 billion between fiscal years 2018 and 2022.
