The Zhitong Finance app learned that according to Electrek's report today (December 16), the US federal electric vehicle tax credit discussed in the “2019 Renewable Energy and Efficiency Growth Act” has made significant progress, which may benefit Tesla (TSLA.US) and GM (GM.US).

Current electric vehicle tax credit policy

As early as 2010, the US Congress passed a tax credit policy for electric vehicle buyers, making them eligible for a $7,500 tax refund when paying taxes after purchasing a new electric vehicle. According to the policy, any company that starts producing electric vehicles can initially receive a tax credit of 7,500 US dollars per vehicle. After the sales volume exceeds 200,000 vehicles, the tax credit will be reduced by 50% every six months until it is gradually abolished.

Tesla was the first to achieve this milestone in the third quarter of 2018, followed by GM in the fourth quarter of 2018. As of January 1, 2019, Tesla customers can only receive a tax credit of $3,750. Next year, this tax credit will completely disappear. The two companies had previously joined forces to lobby for an extension of the policy for the use of their cars, but to no avail.

The options page on Tesla's US official website shows that “vehicles delivered after December 31 will no longer enjoy the $1,875 federal tax credit.”

New electric vehicle tax credits after amendments to the Bill (Section 401 of the Bill)

The current draft will provide for electric vehicle tax credits as follows:

Raise the threshold from 200,000 to 600,000 vehicles;

Electric vehicles sold by Tesla and GM in 2019 will not be included in the new 600,000 threshold if they only meet the conditions for a partial tax refund reduction;

Reduce the tax credit from the current $7,500 to $7,000.