Congress spares $7,500 EV tax credit – Roadshow

The $7,500 electric vehicle tax credit have been saved from the chopping block according to reports. Following pressure from EV advocacy groups, consortiums supporting affordable and clean transportation, and a petition signed by more than 20 mayors of major US cities, House and Senate members agreed to spare the tax credit during final negotiations.

Since 2010, consumers purchasing all-electric and plug-in hybrid cars were eligible for a federal income tax credit of up to $7,500. Depending on battery capacity, credit amounts vary between vehicles.  

The Toyota Prius Prime gets a $4,502 credit.

Antuan Goodwin/Roadshow

Models such as the Tesla Model S, Model X and long-range Model 3 receive the full $7,500 credit, while the Toyota Prius Prime PHEV is eligible for a $4,502 credit. For those in need of a big plug-in hybrid people-mover, the Chrysler Pacifica PHEV is good for a $7,500 tax rebate.

Groups supporting the tax credit argue that without it, a significant blow would be dealt to the electric car market that has helped create jobs. The Department of Energy estimates that some 215,000 US jobs are tied to electric vehicle development and manufacturing.

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