The U.S. electric vehicle market is hitting an inflection point as companies seek to boost manufacturing at the same time another major automaker is set to lose a critical incentive for consumers.
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The $7,500 electric vehicle tax credit begins to fade at 200,000 vehicles sold per manufacturer, a threshold reached by General Motors Co. and Tesla Inc. years ago. Toyota Motor Corp. announced on Friday that it has passed the sales milestone, a brand that Ford Motor Co. is also fast approaching.
Democrats remain interested in ways to expand EV credit, but that effort is wrapped up in the Biden administration’s stalled tax, climate and social spending plan.
Ellen Hughes-Cromwick, senior resident climate and energy fellow at the Third Way think tank, is a guest on the latest episode of Talking Tax, which was taped ahead of Toyota’s announcement. Hughes-Cromwick – who previously worked at the Commerce Department and Ford – discusses the growth of the electric vehicle sector, breaks down the case for expanding the federal tax credit and explains what it will take to create a market for used electric vehicles.
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