On Monday, the 11th of March 2019, the White House had proposed an elimination of tax credit worth of as much as $7,500 over the purchase of new electric vehicles, a surprising budget move which would likely to save $2.5 billion for US government over a decade.
In the recent past, major electric vehicle makers such as Tesla and General Motor Co. had been lobbying the US Congress to extend the tax incentive, which according to present law would evade after selling 2,00,000 vehicles.
Despite an initiative to extend the tax incentives for electric vehicles, Trump administration had apparently been thrusting to gear up diesel vehicles as an attempt to balance US oil supply surge. Last year, among all of the electric vehicle makers, the Tesla Inc.
and General Motor Corp. had surpassed their quota of 2,00,000 vehicles and lost the tax incentives worth of up to $7,500 for their new customers, and an aftermath, Tesla Inc. had to slash their popular Model 3 Sedan price thrice to grapple with the clients’ brand loyalty.
Never the less, other major automakers except Tesla and GM were far apart from hitting the 2,00,000 figures. According to the current rules, a tax rebate of $3,750 received for purchasing Tesla Vehicle had dried up on January 1st and General Motor would experience that benefit until April 1st.
After that, the tax credit would drop to $1,875 for the next six months and it would completely disappear for the Tesla buyers in January 2020.