Bill would extend tax credit for electric vehicles
Bicameral Congressional legislation introduced this week would extend the electric vehicle tax credit for 10 years and would help deploy alternative fuel-charging infrastructure.
Under current law, drivers who purchase electric vehicles can receive a federal tax credit of up to $7,500. There is a cap of $200,000 for each automaker. Once the cap is hit, consumers can no longer receive a tax credit.
The bill would eliminate the per manufacturer cap. The bill would also allow buyers to either apply the credit at the point of sale or use the tax credit over a five-year period. The tax credits would be extended for 10 years to incentivize the building of alternative-fuel infrastructure.
The availability of tax credits influenced 74 percent of consumers’ decisions to buy an electric vehicle, according to a recent survey.
The bill, the Electric Cars Act of 2019, was introduced by Sen. Jeff Merkley (D-OR) and Rep. Peter Welch (D-VT) and is cosponsored in both houses.
“Transportation is the single largest contributor to greenhouse emissions in the United States,” Welch said. “It is urgent that we transition to cleaner, more efficient modes of transportation. Our legislation will make electric vehicles and their charging stations more affordable…”
