Automakers Urge Congress to Lift Electric Vehicle Tax Credit Cap and Make EVs More Affordable
Automakers Urge Congress to Lift Electric Vehicle Tax Credit Cap
Automakers are calling on Congress to lift the cap on the federal government’s $7,500 electric vehicle tax credit. The CEOs of GM, Ford, Stellantis and Toyota North America have written a joint letter to congressional leaders, arguing that the credit is critical for affordability of the vehicles amid increases in production and commodity costs. GM and Tesla are the only automakers to have exceeded the limit thus far.
The executives argue that lifting the cap would encourage consumer adoption of electric vehicles (EVs). Currently, the credit begins phasing out once a company sells 200,000 plug-in EVs. This has caused some automakers to miss out on the incentive as they have already hit the cap. The letter states that “without this incentive, many consumers will be unable to afford an EV or may choose not to purchase one at all.”
The letter also notes that EVs are becoming increasingly popular due to their environmental benefits and cost savings over time. It points out that EVs are now more affordable than ever before and that “the cost of ownership is now comparable to traditional gasoline-powered vehicles.” The executives argue that lifting the cap would help accelerate consumer adoption of EVs and “help ensure our nation meets its climate goals.”
The letter concludes by urging Congress to act quickly on this issue. It states that “we believe it is critical for Congress to act now to extend or eliminate the sales cap so that all consumers can benefit from this important incentive.” It remains to be seen if Congress will take action on this issue, but it is clear that automakers are eager for a change.
The letter is the latest in a series of moves by automakers to encourage EV adoption. GM recently announced that it will invest $27 billion in electric and autonomous vehicles over the next five years, while Ford has committed to investing $22 billion in EVs by 2025. Other automakers have also made similar commitments, signaling their commitment to the future of electric mobility.
It is clear that automakers are taking the issue of EV adoption seriously. The joint letter from GM, Ford, Stellantis and Toyota North America shows that they are willing to work together to push for policy changes that will make EVs more accessible and affordable for consumers. It remains to be seen if Congress will act on this issue, but it is clear that automakers are eager for a change.
What is the federal government's electric vehicle tax credit?
The federal government offers a $7,500 tax credit for consumers who purchase an electric vehicle. This credit begins to phase out once a company sells 200,000 plug-in electric vehicles.
Who is urging Congress to lift the cap on the electric vehicle tax credit?
The CEOs of GM, Ford, Stellantis and Toyota North America are urging Congress to lift the sales cap on the federal government’s $7,500 electric vehicle tax credit.
Why do automakers want the cap lifted?
The executives contend that the credit is critical for affordability of the vehicles amid increases in production and commodity costs. GM and Tesla are the only automakers to have exceeded the limit thus far.
How will lifting the cap help consumers?
Lifting the cap would encourage consumer adoption of electric cars and trucks by making them more affordable. It would also allow more companies to benefit from the tax credit.
What other incentives are automakers offering to encourage electric vehicle adoption?
Automakers are offering a variety of incentives to encourage electric vehicle adoption. These include discounts on the purchase price, free charging stations, and access to exclusive charging networks. Some companies are also offering special financing options for electric vehicles.