Proposed reforms for the federal incentive program for electric vehicles would grant Tesla access to more tax credits on its cars. According to Electrek, buyers of 400,000 more Tesla vehicles would receive a $7,000 tax credit if the reform is passed.
History of the tax credit and Tesla
The government has had an incentive program for EV purchases dating back to the Bush era, although it was expanded during the Obama administration. The program provided $7,500 in tax credits to buyers of new EVs, including those from Tesla. However, it also included a cap of 200,000 vehicles in the U.S. from each automaker.
After reaching 200,000 electric vehicles, the tax credit started to phase out at each automaker, so buyers would receive less and less of a credit until it was phased out completely. Tesla was the first automaker to reach the threshold in 2018.
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