- The GOP tax bill would eliminate a $7,500 tax credit for electric vehicles.
- Some consumers, like Adam Bink, rely on the incentive to afford electric cars, which are still more expensive than ICE vehicles due to battery costs.
- Automakers like General Motors are fighting to preserve the tax break.
Adam Bink, 34, said he will cancel his Tesla Model 3 order if Republicans eliminate the $7,500 tax credit for electric vehicles.
Bink, a resident of Sonoma, California, ordered the Model 3 when Tesla CEO Elon Musk unveiled the sedan in April. He’s expecting to get the car in Spring 2018 — a delayed delivery date due to Tesla’s production struggles.
But if Congress passes the tax bill in its entirety, it won’t matter whether Bink will get his car a few months late. He said he will have to cancel it.
“It just puts it out of reach financially,” Bink said in an interview. “I have to think that a lot of people who placed reservations for this car are in the same boat where they did the math and said, ‘this helps me out and makes it a more reasonable budget.'”
Bink’s financial situation highlights the role the tax break has played in helping drive electric-vehicle adoption. Although battery prices are poised to fall, their current cost makes electric vehicles more expensive than most cars on the market today.
As automakers invest big bucks in electric vehicles, industry leaders have spoken out against the potential elimination of the tax break.
“There is no question that the potential elimination or phase out of the electric vehicle tax credit will impact the choices of prospective buyers and make it more challenging for manufacturers to comply with electric vehicle mandates in 10 states,” the Alliance of Automobile Manufacturers said in a statement. Read More Here