If you’re in the market for a new electric car, you better act fast. House Republicans have reportedly removed the $7,500 electric vehicle federal tax credit from their new House bill. If the bill passes, that means that electric car buyers will see the tax credit disappear by the end of the year.
The official details from the bill have not been released yet. It was assumed that the credits would simply not renew for an automaker once they reached 200,000 EV deliveries, but now it’s been confirmed that the credit will end for all buyers by the end of the year. If the bill passes, this will be a major blow to every automaker, since the federal tax credit is a significant factor in EV sales.
Electric car sales will drop off even further in states that don’t offer any state EV credits as well.
“That will stop any electric vehicle market in the U.S., apart from sales of the highly expensive Tesla Model S,” said Xavier Mosquet, senior partner at consultant Boston Consulting Group, who authored a study on the growth of battery powered vehicles. “There’s no Tesla 3, no Bolt, no Leaf in a market without incentives.”