General Motors will soon lose its $7,500 electric vehicle tax incentive

Polycount

TS Evangelist
Staff member

Tesla isn't the only EV maker who will begin to lose its federal tax incentives - General Motors is next in line. According to a Reuters report published on Wednesday, GM officially shipped its 200,000th electric vehicle recently.

Unfortunately for the company, due to the rules laid out by the US' federal goverment, that means GM's $7,500 tax credit is going out the window slowly but surely. As Tesla has just begun to experience, GM's tax credit will be halved to $3,750 in April, halved again to $1,875 in October, and then phased out entirely beginning in October of 2020.

This is unfortunate news for GM's EV customers, as it means they'll be losing out on some significant savings - $3,750 is a tremendous amount of money for budget-conscious EV hopefuls to shell out. Tesla has attempted to mitigate this issue by dropping the price of its vehicles by $2,000 (to "partially absorb" the blow from the lost incentives) across the board, but GM will likely not offer a similar discount.

To be clear, GM has not officially announced this information - Reuters' report is based on statements given to them by an anonymous person "briefed on the matter." As such, our more skeptical readers might want to wait until tomorrow, when GM is set to release its latest sales results.

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Uncle Al

TS Evangelist
With any luck at all the Democrats might take up the mantel of doing what is right for businesses and consumers and reverse this one. Of course, time will tell and certainly somebody in the administration will notice the Dem's will be getting an atta-boy and reverse the administrations position on it.
 

amstech

IT Overlord
I actually like the way the Volt looks.
It's too bad it don't come in sporty 2 door version with some added visual goodies.
 

Nightfire

TS Maniac
With any luck at all the Democrats might take up the mantel of doing what is right for businesses and consumers and reverse this one. Of course, time will tell and certainly somebody in the administration will notice the Dem's will be getting an atta-boy and reverse the administrations position on it.
How about we do what is right for taxpayers for a change? The tax cuts were designed to give the electric vehicle industry going. It was not designed to sustain it.

People like you are why we had criminal businesses like Solyndra take so much of our hard earned pay.
 

Evernessince

TS Evangelist
With any luck at all the Democrats might take up the mantel of doing what is right for businesses and consumers and reverse this one. Of course, time will tell and certainly somebody in the administration will notice the Dem's will be getting an atta-boy and reverse the administrations position on it.
How about we do what is right for taxpayers for a change? The tax cuts were designed to give the electric vehicle industry going. It was not designed to sustain it.

People like you are why we had criminal businesses like Solyndra take so much of our hard earned pay.
Please do not refer to other members as "People like you". Personal attacks are not allowed here. If you are going to respond to Uncle Al, respond to his argument.
 

captaincranky

TechSpot Addict
I actually like the way the Volt looks.
It's too bad it don't come in sporty 2 door version with some added visual goodies.
Since EVs are supposed to be "practical", and, "environmentally friendly", it should come as no surprise that "sporty" has taken a back seat, so to speak.
 

captaincranky

TechSpot Addict
People like you are why we had criminal businesses like Solyndra take so much of our hard earned pay.
Now there's a rabbit hole you don't want to venture down. I did a quick read on the company, and it seems that a lack of government oversight was partly to blame.

So, this is probably the wrong place to be proselytizing additional government controls. (That of course assumes there is actually a "right place" for it).

Techspot politics can run as far left as total anarchy with diametric polar reversals occurring spontaneously.

For instance, I'm a Trump supporter who now longs for his impeachment trial. (Anything to keep the news cycle lively, I suppose).
 

stewi0001

TS Evangelist
Platinum
I actually like the way the Volt looks.
It's too bad it don't come in sporty 2 door version with some added visual goodies.
I had a 2 door car once. I'm never going to get that again unless it is suppose to be a 2 person vehicle.
 
S

senketsu

If what I hear, about how business (private sector) can do it leaner, faster, more efficiently and cheaper, why oh why do we keep giving them our tax dollars. These are for profit corporations and unless you are a shareholder why would you want them to get a single public dollar....
 

dogofwars

TS Addict
With any luck at all the Democrats might take up the mantel of doing what is right for businesses and consumers and reverse this one. Of course, time will tell and certainly somebody in the administration will notice the Dem's will be getting an atta-boy and reverse the administrations position on it.
How about we do what is right for taxpayers for a change? The tax cuts were designed to give the electric vehicle industry going. It was not designed to sustain it.

People like you are why we had criminal businesses like Solyndra take so much of our hard earned pay.
Don't think that you will pay less taxes unless you are the top 0.1%. It is better that the little guy get something in return than let the money used for only the big company.
 
If what I hear, about how business (private sector) can do it leaner, faster, more efficiently and cheaper, why oh why do we keep giving them our tax dollars. These are for profit corporations and unless you are a shareholder why would you want them to get a single public dollar....
The EV tax credit is a perfect example of why to have this type of subsidy/inventive.
New tech takes a lot of $ to develop and pushes prices up in the early part of the sales cycle, often much higher than mature designs using old tech. The incentive partially counteracts this for a limited time until the economies of scale and experience can catch up, as it's happened here. Then kill off the subsidy when that financial gap has been reduced or eliminated.