GM and Tesla could benefit from the U.S. bill to boost tax
Report from Reuters stated that a bipartisan group of U.S. lawmakers brought legislation on Wednesday to expand the electric vehicle tax credit by 400000 vehicles per manufacturer. This figure is believed to give a boost to automobile manufacturing firms such as Tesla Inc. and General Motors Co. before the existing credit comes to an end for them.
The following are the sponsors of the bill; two Democratic senators Debbie Stabenow & Gary Peters and two Republican senators Lamar Alexander & Susan Collins and one democratic representative Dan Kildee.
According to Reuter’s reporter, the bill could lift electric vehicle sales in a boost for automakers that have committed tens of billions of dollars toward meeting global emissions requirements.
GM and Tesla shares rose on the Reuters report that the said bill would be introduced. Tesla shares recently traded up nearly 1 percent, while GM was up 0.2 percent.
Supporters hope to attach the proposal to tax legislation that could be considered in the next few months.
The existing $7,500 EV tax credit which allows taxpayers to deduct part of the cost of buying an , phases out over 15 months once the automobile manufacturer hits 200,000 cumulative EV sales. GM saw its tax credit cut to $3,750 on April 1. Tesla’s tax credit fell to $3750 on January 1 and will end entirely at year’s end.
The said bill dubbed the “Driving America Forward Act” which would grant each manufacturer of automobile a $7000 tax credit for an additional 400000 vehicles on top of the existing 200000 vehicles eligible for $7500 tax credits. It would shorten the elimination schedule to 9 months.
The bill would also extend the cell credit through 2028. The bill is estimated to cost $11.4 billion with all, but $91 million of that align to extend the EV tax credit.
“We have a cap that is got to go up, I want to get this done as soon as possible” Stabenow narrated to a group of automobile manufacturers at a dinner last week.
Obviously, the bill appears to have strong backing from automobile manufacturers, environmental groups and other concern bodies. However, a strong indication exists that it may face opposition.
Last month the house proposed immediately eliminating the $7500 tax credit, a move it said would save the U.S. government $2.5 billion over a decade.
Senator John Barrasso, a Republican who chairs the environment and public works committee, in February proposed legislation to end the credit and impose a highway user fee on EVs to pay for road repairs.
According to Michael Brune, executive director of the Sierra Club, “as we build and grow the clean energy economy, it is our duty to invest in tackling the sector that generates the most which is the sector.”
The bill has backing from major automobile manufacturers including GM, Tesla, Toyota Motor Corp, Motor Co, Fiat Chrysler Automobiles NV, Motor Co, AG, Nissan motor co., Volkswagen AG and Utilities.
“The EV tax credit provides customers with a proven incentive as we to establish the U.S. as a leader in ” a statement made by the GM president, Mark Reuss.
Originally posted 2019-04-13 08:47:33.
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