GM CEO: Cutting U.S. EV Tax Credit Will Impact Vehicle Sales

Dec. 14, 2017—Mary Barra, CEO of General Motors, says that if congress eliminates an electric vehicle (EV) tax credit, it will have an impact on sales of U.S. EVs, according to a report by Reuters.

The House version of a bill that would cut corporate tax rates calls for eliminating a tax credit of up to $7,500 for purchasers of EVs, according to the report.

Members of the auto industry and environmental groups are lobbying to save the credit.

According to Reuters, Barra says that eliminating the tax credit would affect the way potential EV buyers calculate the cost of owning one.

The tax credit is a subsidy for manufacturers of EVs, which can charge a higher price for electric cars knowing the buyer will get a rebate from the government, according to the report.