Featured Edmunds on elimination of federal tax credits

Source: https://static.ed.edmunds-media.com/unversioned/img/industry-center/analysis/EV_Report_April17.pdf

Federal tax credits for EVs are a part of broader set of EPA policies, which require congressional approval to adjust. So the Trump administration may not eliminate them prematurely but is unlikely to extend these credits. Without these credits, this market is likely to crash. While President Trump did not address federal EV tax credits speci cally in his 2018 budget blueprint released last month, he proposed the elimination of funding for the Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) loan program, which would have assisted future EV production.

Without these credits, this market is likely to crash.

Georgia case study
What happens when subsidies go away

The state of Georgia witnessed tremendous success with EV sales and boasted the second-highest EV sales rate in the U.S. behind California. In 2014, the state accounted for 17 percent of all EVs sold in the U.S. Driving these remarkable numbers was not just shoppers’ dedication to the environment but the state’s o er of a $5,000 tax credit for zero-emission vehicles, in addition to the $7,500 U.S. federal tax credit. These generous incentives could be applied to new vehicles purchased or leased, putting a big dent in the overall cost. ​

An interesting report, well worth a close reading. Living in Alabama, I was aware something was happening in Georgia but I didn't have the details. Since then, I understand Georgia also implemented an extra EV registration fee which would also have an effect. I've not found anything in this report about that effect.

Bob Wilson

 

Here is one of the critical graphs showing what happened in Georgia:

Notice ending the Georgia subsidy impacted the Leaf more than the Tesla or modestly, the BMW i3.

Bob Wilson