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Tesla Will Be First Automaker To Lose the Federal Tax Credit For Electric Cars (theverge.com)
Tesla has confirmed to Jalopnik that its 200,000th vehicle has been delivered this month, meaning the full $7,500 federal tax credit for electric cars will slowly be phased out. Tesla is the first automaker to reach this mark. "GM is close, too, while Nissan, Ford, and others still have a ways to go," notes The Verge. From the report: Tesla customers who take delivery of their cars -- regardless of whether it's a Model S, X, or 3 -- between now and December 31st, 2018, will still be eligible for the full $7,500 credit from the IRS. Customers who take delivery of their cars between January 1st and June 30th, 2019, will only be eligible for a $3,750 credit. And customers who take delivery of their cars between July 1st and December 31st, 2019, will be offered just $1,875. After that, the incentive is dead.
Put in place early on in the Obama administration, the tax credit was seen as a tool that could be used to encourage customers to buy plug-in electric or hybrid vehicles. This would simultaneously help advance the president's climate and clean energy goals while offering consumers a bit of a break while the cost of battery technology slowly came down. It was also meant to encourage manufacturers to push for greater advancements in that technology. The dollar amount was technically flexible; it was essentially a $2,500 credit with room to increase up to $7,500 depending on the battery capacity of the car being sold. The better the battery in a company's car, the better the rebate their buyers would get.
Put in place early on in the Obama administration, the tax credit was seen as a tool that could be used to encourage customers to buy plug-in electric or hybrid vehicles. This would simultaneously help advance the president's climate and clean energy goals while offering consumers a bit of a break while the cost of battery technology slowly came down. It was also meant to encourage manufacturers to push for greater advancements in that technology. The dollar amount was technically flexible; it was essentially a $2,500 credit with room to increase up to $7,500 depending on the battery capacity of the car being sold. The better the battery in a company's car, the better the rebate their buyers would get.
There's just no such thing as a cheaper way to power cars... just a different way of doing things.
Actually, it's much cheaper to power an electric car.
if there was a better way to move fuel, everybody would be going for it.
And everybody would move to electric cars if the cars themselves cost the same amount of money.
Eventually, EVs will be similarly priced to ICE cars and ICE will quickly evaporate. The problem we currently face is mass manufacturing batteries in a way that will lower their cost.
Anons need not reply. Questions end with a question mark.
Then you factor in the fact that the fuel storage weighs just as much when full than when it's empty. Also these so-called Zero Emission Vehicles are only zero at the consumption end. This falls apart when you factor in the emissions generated to create the energy. Tanstaafl!
Or maybe the best way could have been the free market with no subsidies for anyone?
Don't get me wrong, I'm appalled at the conventional auto company bailouts as well, and would just prefer that the federal government basically entirely got out of the business of picking winners and losers.
-Styopa
Programme was established under Bush. Energy Improvement and Extension Act of 2008.
So what?! The FACT is that little people like ME subsidies the rich.
I don't give a shit about WHO did it- just the FACT that I am getting screwed.
Unbelievable.
Curious how you paid "your fair share" for infrastructure like roads and bridges - all those more expensive to run ICE vehicles paid for them with gasoline taxes.
EVs will remain cheaper than ICE vehicles as long as they get to use the roads, bridges and tunnels for free.
Ken
Even if there was a 100% tax on the electricity used to power EVs, it would still be cheaper!
Which means the tax would be more than that. The tax must be equal to the current tax or the roads won't be funded. This "bubble" will burst as the percentage of EVs on the road cross some threshold and those vehicles must pay an equivalent amount of tax as a ICE vehicle.
Trucking companies are effectively being subsidized by everyone else.
And so the cost of goods will go up (because obviously the trucking companies will pass transportation costs directly on to those who need things shipped), which will result in trucking companies being subsidized by everyone else.
Using different terminology to try and frame these things in a different light doesn't change the facts. Vehicles using roads will have to pay taxes to have those roads built and maintained. Doesn't matter if EV, ICE or powered by mice running on exercise wheels.
Better known as 318230.