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The Plug-In Electric Vehicle Tax Credit (CRS Report for Congress)

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Release Date Revised May 14, 2019
Report Number IF11017
Report Type In Focus
Authors Molly F. Sherlock
Source Agency Congressional Research Service
Older Revisions
  • Premium   Nov. 6, 2018 (2 pages, $24.95) add
Summary:

Buyers of qualifying plug-in electric vehicles (EVs) may be able to claim a federal income tax credit of up to $7,500. The tax credit phases out once a vehicle manufacturer has sold 200,000 qualifying vehicles. Tesla has reached this threshold and credits for Tesla vehicles are to begin phasing out in 2019. General Motors (GM) is expected to cross the phase-out threshold before the end of 2018. In the 115th Congress, legislation has been introduced that would expand tax credits for EVs. Legislation has also been introduced to repeal the provision. This In Focus provides an overview of the plug-in EV tax credit and briefly discusses relevant economic policy considerations.