GM EVs, Plug-ins Will Soon be Exempt from the Full Federal Tax Credit
Hurry, the $7,500 credit will slowly be phased out over the next 15 months.
General Motors has known it was coming for a while, but now it's official. Reuters reports the U.S. automaker has sold more than 200,000 plug-in hybrid and fully electric vehicles since 2010. On the one hand, that's a big accomplishment, but on the other, it means customers soon won't qualify for the full $7,500 tax credit that's been in place since 2010.
This news doesn't mean the Bolt EV will immediately be more expensive to buy, though. EV buyers will still qualify for the full credit through the first quarter of 2019. Then, in April, the credit will be cut in half to $3,750. In October, it will drop to $1,875 before being completely phased out in April of 2020.
Tesla also crossed the 200,000-vehicle mark in 2018, triggering the same phaseout. To help customers defray the cost, it recently cut prices by $2,000. When asked whether it planned to offer a similar discount, GM reminded us that customers will still be able to claim the full tax credit through March but couldn't comment on Bolt pricing. Both automakers have also reportedly lobbied Congress to lift the 200,000-vehicle cap or extend the credit.
Whether lawmakers change the tax credit's rules or not, GM says it plans to expand its electric lineup over the next several years. That includes two new Bolt-based EVs that should be revealed soon, and by 2023, GM promises it will offer at least 20 all-electric vehicles. In November, it also announced that it will double its investment in electric and self-driving car technology, though sadly the now-discontinued Chevrolet Volt plug-in hybrid won't be one of the beneficiaries of that investment.