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Credit for Plug-in Electric Vehicles Winds Down

Posted by Taylor Bennett on Nov 27, 2019 8:14:00 AM
Taylor Bennett

The tax credit available for purchasers of new General Motors plug-in electric vehicles begins phasing out on April 1, 2019. The phaseout was triggered because General Motors, LLC has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the fourth quarter of 2018.

Qualifying vehicles by the manufacturer, which include Chevrolet Spark EV (2014-2016), Chevrolet Volt (2011-2019), Chevrolet Bolt (2017-2019), Cadillac CT6 Plug-In (2017-2018), and Cadillac ELR (2014, 2016) are eligible for a $7,500 credit if acquired before April 1, 2019. Beginning April 1, 2019, however, the credit is reduced to $3,750 for General Motors' eligible vehicles. For the next two quarters beginning on October 1, 2019, the credit will be reduced even further to $1,875. After March 31, 2020, no credit will be available.

The plug-in electric drive motor vehicle credit was enacted in the Energy Improvement and Extension Act of 2008 and subsequently modified. The law enables owners of eligible passenger vehicles and light trucks to take the credit. By law, five quarters after reaching the sales threshold, the credit ends for the manufacturer. General Motors vehicles are eligible for some portion of the credit until April 1, 2020.

Topics: Personal Finance, Taxes, Tax Credit