Eliminating EV Tax Credits is Getting Bad Reviews
President Donald Trump recently threatened General Motors to eliminate a federal subsidy for electric vehicles. Some EV experts say that killing the tax credit for electric vehicles would take away a critical incentive right as the EV industry is gaining momentum, and lose the U.S. technological advantage to other countries that are more aggressively developing EVs, including Germany, China, Japan, France and Russia.
At Service King Fort Worth in Fort Worth, TX we are all about the environment and realize that electric cars are a green alternative when compared cars that run on gasoline.
Until now, EV credits have strengthened the EV market in the United States and got the prices down and help sales, even though it is still a very small market. Electric vehicles are attractive to consumers because they're the cleanest, most efficient vehicles on the road today. Eliminating tax incentives will cripple the market in many ways, and the timing couldn't be worse.
Tax credits important part of “a zero-emissions future” and establishing this country as the leader in electric cars, GM spokeswoman Jeannine Ginivan said. GM strongly believes that the credits need to be modified so that all customers can continue to receive the advantages of the full benefit, she said.
The full $7,500 EV tax credit is limited to 200,000 sales for each car manufacturer. The thinking behind the plan was that once the EV market was established, the incentive would no longer be necessary. Tesla reached their threshold rather quickly last year and has now sold in excess of 295,000 electric vehicles, according to EVAdoption. General Motors also hot their number in late 2018, will hit it by the end of the year, which means that for the two leading makers of EVs in the United States will be available with smaller tax credits this year before they could be phased out altogether.
Many critics claim that the tax-credit program subsidizes only rich people who don't really need the help. Tesla models can sell for $100,000 or more, and several upcoming EVs are considered luxury brands t be made by companies including Audi and Porsche. EV advocates claim that mainstream shoppers can benefit greatly from the credits, especially those who purchase EVs such as the Chevrolet Volt and Nissan Leaf, both of which begin in the $30,000 price range.
If we need to protect the environment and the future of the planet, EVs are a smart way to go. Huge amounts of money have already been invested in electric cars and tax incentives drive the market, so why eliminate them and send us all back to square one?
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Sources: AOL and MSN
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