Plug-in electric vehicle manufacturer crosses 200,000 sold threshold
Washington D.C.—The IRS has announced that General Motors has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the fourth quarter of 2018. This triggers a phase out of the tax credit available for purchasers of new General Motors plug-in electric vehicles that began April 1.
Qualifying vehicles by the manufacturer were eligible for a $7,500 credit if acquired before April 1. The credit is now $3,750 for General Motors’ eligible vehicles. On Oct. 1, the credit will be reduced to $1,875 for the next two quarters. 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 in later law. It provides a credit for eligible passenger vehicles and light trucks. By law, five quarters after reaching the sales threshold, the credit ends for the manufacturer. General Motors vehicles are eligible for some portion of a credit until April 1, 2020.