GM To Lose Full $7500 EV Tax Credit On April 1

From April 1, hybrid and electric vehicles built by General Motors will no longer be available with the full $7500 federal tax credit.

CBS News reports that the IRS confirmed the tax credit will be halved to $3750 on April 1 before being reduced again to $1875 on October 1. The tax credit will then be phased out completely in April 2020.

The ‘Plug-In Electric Drive Vehicle Credit’ was introduced in 2008 by the Obama administration in a bid to encourage car manufacturers to build hybrid and electric vehicles. Additionally, the tax credit helps to encourage consumers to buy green vehicles.

Also Read: Trump Administration Wants To Eliminate $7,500 EV Tax Credit

However, the full $7500 federal tax credit is only available through the fiscal quarter in which an automaker delivers its 200,000th electric vehicle. General Motors hit that figure in late 2018 and buyers will now have to pay a little extra to get the keys to one of the brand’s green vehicles.

Tesla was the first car manufacturer in the United States to hit 200,000 cumulative electric vehicle sales and in December, its federal tax credit fell to $3750.

While those in the market for an electric General Motors may be disappointed at the news, if they’re patient, the cost of the company’s electric vehicles will eventually fall to a point where they are no longer more expensive than ICE-powered alternatives.

The car manufacturer has bold ambitions for its electric vehicles and last year, announced that it will launch at least 20 new electrified vehicles by the year 2023 around the world.