Tesla and Other EVs May Soon Benefit from Consistent Revisions of the Current Tax Credit
Electric vehicles are seen as the future of transportation and since the current tax credit is almost gone, new developments in this sector are more than welcome. Congressman Mike Thompson, who is one of the most influential members of the Ways and Means Committee, recently promoted a draft bill that may be called the “Green Act of 2019” or “Growing Renewable Energy and Efficiency Now Act of 2019”.
What kind of changes will be bought in, if this draft bill becomes active? A consistent change will be felt in the tax credit threshold, which will be raised from $200,000, as it is currently set, to $600,000 for all the electric vehicles. However, it is worth mentioning the fact that the EVs sold by Tesla and GM that were eligible for diminished partial credits only will not make it to the new $600,000 threshold. Also, the credit that is currently set at $7,500 will be downsized to $7000.
The best part about this new draft bill is that it includes used EVs as well, not just new ones. Of course, there are certain conditions the used EV should meet to enjoy the benefits of the coming revisions. Not very many used EV will make it, but still, it’s a change that could lead to others. As for Tesla vehicles and other EVs makes, the development sounds promising. The news is great, but the bill still has to go through two huge waves that could break it, the Ways and Means Committee and Senate, which is mostly controlled by the Republicans.