About the EV Tax Credit
The electric vehicle tax credit is a significant purchase factor for car buyers and is essential to the continued development of the EV market
The electric vehicle tax credit was passed by Congress in 2008 to boost the market for EVs. It is considered a true benefit because it goes directly to consumers, not car manufacturers or other companies. As a result, this critical federal tax incentive has proven to be a major factor in the purchase decision of car buyers willing to consider an electric vehicle.
Unfortunately, the structure of the tax credit included a cap on the total number of consumers who can use the credit per car manufacturer. That cap will result in a less than level playing field in the EV space. This has created unbalanced market incentives and will soon make it harder for consumers to purchase the cars they want.
The $7,500 tax credit is a significant purchase factor for car buyers and is essential to the continued development of the EV market. Without a modification to the policy, consumer demand will suffer and so will the future of EVs in the U.S.
The benefits of a strong and stable EV market are substantial. Beyond creating nearly 300,000 jobs across the U.S., the credit also makes the U.S. more energy independent and reduces air pollution. And EVs are the foundation for even more advanced transportation technologies, such as autonomous vehicles and EVs in shared mobility services, that will be critical to future mobility.
Reforming the credit will create a level playing field for ALL electric vehicle manufacturers, giving consumers the freedom to decide which car they want in a free and fair market. More options lead to more competition, which spurs American innovation and maintains our position as a global leader in automotive technology.