A bill that would terminate the $7,500 federal tax credit for electric vehicles was introduced by U.S. Sen. John Barrasso (R-Wyo.), chairman of the Environment and Public Works committee.
Barrasso will seek to nix the federal tax credit that has supported sales of plug-in electric vehicles, which was put in place in 2008 and 2009 for plug-in and converted plug-in electric vehicles. The bill amends the Internal Revenue Code of 1986 to terminate the credit and provides for a federal highway user fee on alternative fuel vehicles, according to Green Car Congress.
Last year, congressional negotiators spared the $7,500 federal tax credit, which was retained as part of a compromise package from a $1.5 trillion House tax bill.
Recently, California was considering an increase in subsidies for battery-electric vehicles that are sold in the state by $2,000, reports Bloomberg. The federal government’s current $7,500 tax credit on electric vehicles will start to fall once companies have grown enough to sell a total of 200,000 vehicles each.
Originally posted on Green Fleet Magazine
See all comments