Category: Federal Government

GM & Tesla Electric Vehicle Tax Credits being phased out in 2019

Both GM and Tesla have sold a total of more than 200,000 Electric Vehicles – triggering the tax-credit phaseout.

https://www.cnbc.com/2019/01/02/gm-hit-200000-us-electric-vehicles-sold-in-2018.html

General Motors reached 200,000 cumulative U.S. electric vehicles sold late last year, triggering a phase-out of a $7,500 federal tax credit over the next 15 months, a person briefed on the matter said on Wednesday.

The largest U.S. automaker hit the figure in the fourth quarter of 2018, which means the credit will fall to $3,750 in April, and then drop to $1,875 in October for six months.

The Chevrolet Bolt EV is introduced as the Car of the Year during the North American International Auto Show in Detroit, January 9, 2017.

The tax credit is aimed at defraying the cost of electric vehicles that are more expensive than similarly sized internal combustion engine vehicles. In 2009, Congress set the phase-out threshold at 200,000 vehicles per manufacturer.

GM, which said previously it expected to reach the 200,000 sales figure before the end of 2018, declined to comment ahead of the release of its quarterly sales results on Thursday.

GM and Tesla, which hit the 200,000 figure in July 2018, have both lobbied Congress to lift the cap or extend the existing tax credit. Tesla’s EV tax credit fell to $3,750 on Tuesday and Tesla said it was cutting prices on its EVs by $2,000 to partially offset the lower tax credit.

In March, GM Chief Executive Mary Barra called on Congress to expand the consumer tax credit for electric vehicles as the company boosted production of the EV Bolt in response to consumer demand. She repeated the request last month during a visit to Capitol Hill.

GM said in November it was doubling resources allocated to developing electric and self-driving vehicles as part of a significant restructuring that includes ending production at five North American plants. GM also announced it would halt production of the plug-in hybrid Chevrolet Volt by March.

In November, a congressional report said 57,066 taxpayers claimed $375 million in EV tax credits in 2016. Congress estimates the cost of the EV tax credit at $7.5 billion between the 2018 and 2022 fiscal years. now the $7,500 federal tax credit will be phased out on of their future sales.

The Voice of Hope in the Renewable Field

 

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There is more speculation, more rumors, more nervous people in the renewable energy field right now then ever before in our history. It is refreshing this week to hear of some positive forward thinking in the midst of all the angst. The U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy boldly announced it’s commitment for it’s SunShot Inititive to cut the cost of solar-generated electricity by 50% between 2020 and 2030. This is a new target continuing SunShot Initiative’s progress in helping the solar industry reach more than 90% of the initiative’s established 2020 goal in just five years. This includes brand new funding opps that will push the cost of solar even further down. Three cheers for the Department of Energy!

The Energy Policy Modernization Act of 2016

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The Energy Policy Modernization Act of 2016,  first introduced by Senators Murkowski and Maria Cantwell in 2012,  may be finally getting passed.  The last energy act passed by Congress was back in 2007. We are long over due for change. However,  we still have to wait and see until it is finally passed to see what is really going to happen.   The NRDC and 9 other major environmental organizations have expressed concern over the act as it now stands in a letter dated yesterday. This is a bi-partisan bill in an arena where playing nicely together generally does not occur.  At this time Congress is debating the many amendments which fall on all sides of the issue.  See a brief summary from today’s Utility Dive.

Canada and US Working Together for Climate Comitments

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It is good to see that there is a lot that goes on off the radar on working on climate change.  The US and the Canadian governments have been hard at work since Paris. Trudeau and Obama have been working together and have many common goals. As the writer of this article states “By shifting the discussion from pipelines to power lines, the leaders made some progress today”. It is a good thing. Read Here.

President Obama Proposes Doubling Clean Energy R & D by 2012

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The White House released a “Fact Sheet” this week on the President’s proposal to double clean energy Research and Development by 2012.  “Accelerating clean energy innovation is essential to achieving the goal of limiting the rise in global temperatures to well below 2˚C,” the White House said.  Read article here.

Major US Senate Solar Bill on Floor Today!

Major US Senate Solar Bill On Floor Today!