INSUBCONTINENT EXCLUSIVE:
Tesla, GM and Nissan are among a group of 15 companies that launched a new coalition aimed at reforming the electric vehicle tax
credit.
The group called EV Drive Coalition brings together a mix of automakers, industry giant ABB, climate change and energy lobbying
organizations and EV infrastructure companies, including ChargePoint.
The coalition, which officially launched Tuesday, wants to pass
legislation that would tweak the federal electric vehicle tax credit to &ensure that it works better for more consumers for a longer time
frame and spurs increased growth of the U.S
EV market.&
The federal electric vehicle tax credit gives consumers a $7,500 credit when they buy an all-electric vehicle
The incentive has been credited for spurring adoption of EVs
However, once an automaker has sold 200,000 electric vehicles, the credit begins to wind down.
Tesla is already in this position and GM is
closing in.Earlier this year, electric automaker delivered its 200,000th electric vehicle
The achievement activated a countdown for the $7,500 federal tax credit offered to consumers who buy new electric vehicles
Under these rules, Tesla customers must take delivery of their new Model S, Model X or Model 3 by December 31 to get the full credit.
Tesla
vehicles delivered between January 1 and June 30, 2019, will get a reduced $3,750 federal tax credit
After that, the credit drops to $1,875 before ending altogether.
As of October, GM has sold nearly 197,000 electric vehicles.
The EV
Drive Coalition wants tolift the current cap on the number of consumers who can take advantage of the credit through each
manufacturer.
&Arbitrary constraints with the federal credit limit consumer options and make it harder for consumers to purchase the cars
they want,& Joel Levin, executive director of Plug In America said in a statement
&Lifting the cap would create a more level playing field for all manufacturers, giving consumers the freedom to decide which car they want
in a free and fair market
Increased competition spurs more American innovation and technology.&
The coalition says it supports the eventual phase out of the credit
once the EV industry has had additional time to mature and grow.
