EV Tax Credit rendered to the United State’s consumer will not be discarded soon. It was proposed last week by the House Republicans to discard the EV Tax Credit for this year’s 31st December. But, while speaking to Financial Post, John Joeven, Senator of South Dakota Republican, enlightens that a newly revised tax bill version has been put forward. However, in the revised version, they prefer to keep a hold on to $7500 credit. For rising sales of electric vehicles in the United States, Tax Credit is preferred to be an important factor. However, some carmakers make all their effort to keep the credit in this week discussion.
Though there is no full proof evidence that why carmakers want to retain the EV Tax Credit but as Automotive News says the reason can be simple. According to them, in the new tax bill, there will be fall in the corporate tax. It is expected to go down from 35 percent to 20 percent which can give some major automakers an every year profit of ten million dollars. The companies are very eager to see the tax cut law pass. Thus they came forward to resist the tax credit to keep. However, Christin Baker, the spokeswoman for Ford, doesn’t mention anything about the EV Tax Credit in the letter.
Christin Baker said that they look into tax reform as on key elements which are expected to help the American companies to make business globally. She also said that they will be taking other initiatives in order to promote the electric vehicles. Though there are few carmakers that prefer to remain silent on the issue but there are certain who want the EV Tax Credit to be the same. A spokesman, PG&E, largest utility firm in California said that they are in support of the EV Tax Credit. He said that they are looking at the bright and positive side that can bring development to the EV’s market.