Tesla, GM & Co. demand tax credit reform in the USA


In the U.S., a new alliance of well-known e-mobility players called the EV Drive Coalition is campaigning for a reform of tax credit regulations. Current regulations entitle buyers of e-vehicles to up to 7,500 dollars in tax-credits, but limits this number to an upper limit of 200,000 e-vehicles per manufacturer. The EV Drive Coalition is calling for the abolition of this upper limit.

The addressee of this demand is the U.S. Congress. The  Coalition was formed to specifically address the issue of tax credits. Members of the alliance include Tesla, GM, Nissan, Proterra, ABB and ChargePoint, among others. Last month GM demanded a U.S national zero emmissions program, so that the U.S. may reach an electric car proportion of 25% of new vehicles by 2030. On the issue of tax credits, GM is joined by its many partner members in calling for reform. Tesla has already crossed the existing 200,000-vehicle threshold allowed in tax credit regulations, and GM is on the verge of reaching it.

In a special press release from its website, the EV Drive Coalition wrote that, “The original electric vehicle tax credit, which goes directly to consumers not manufacturers, catalysed the market, increased consumer awareness and grew a nascent industry. To promote continued market growth and stabilization, members of the EV Drive Coalition are advocating for reform to lift the current cap on the number of consumers who can take advantage of the credit through each manufacturer.”

Some Republicans want to do exactly the opposite – to abolish the tax breaks for electric vehicles completely and instead impose a special motorway charge on vehicles using alternative systems. But since the recent midterm elections, the cards have been reshuffled. The tug-of-war over the tax credit is entering a new round.

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