Auto Industry In Arms Over Possible Electronic Vehicle Tax Credit Repeal
In a time of uncertainty for the future of our federal tax code, consumers are wondering if they’ll continue to receive certain incentives on their income taxes. Pending tax reform has threatened to alter or end many incentive programs, as well as lowering some pay outs for certain deductions. One of these such stimulus programs is the Section 30D Plug-in Electric Drive Vehicle tax credit, which has recently been suggested for repeal.
This hefty, $7,500 tax credit was proposed in order to stimulate the economy, while also progressing the movement of EV’s into the market. Without it, big names in the industry like Nissan and Chevrolet are worried about the future and funding for their Electric cars.
Groups like The EDTA (Electric Drive Transportation Association) and companies at the top of the ladder like General Motors have expressed their disappointment about the idea of a repeal. In statements, both stressed the implications of the repeal, as well as plans to support efforts to be sure the credits stays the course.
Although, this isn’t the first time the credit has faced repeal. When the credit was first introduced, it was unclear weather or not it would be a permanent fixture. But it’s benefits to the economy, and helping dealers get more EV’s into the market, cemented it’s spot: for now.
This news may be quite the shock to several large companies in the industry as well. Notables Mercedes-Benz, Volkswagen and Toyota, are on the horizon of stepping into the EV game. Rumors say Toyota could be ready by 2020, but the effect of the possible repeal could be astronomical for some projects. If the credit is pulled and sales crash, there’s no guarantee those projects will see the light of day.
In a time where it feels maybe everything is uncertain, we await the final word on many issues. Only time will tell the future of the feud over the current tax code. But there are those out there passionate about the cause, that will make sure they put up a good fight.