Victim of its Own Success, GM Buyers May Lose EV Tax Credit this Year

When the federal government agreed to give do-gooders in electric cars a tax break, it didn’t want to be on the hook when electric cars became mainstream. To defend itself against that, it capped the number of electric cars a manufacturer could sell with the tax break to 200,000.

According to GM, the Chevy Bolt and Volt are selling so well that it’s about to bump up against the limit.

And that’s impressive because there’s only one other manufacturer that’s close to the limit and it’s Tesla, which, you may recall, depends entirely on the sale of electric vehicles. The Volt and Bolt, meanwhile only make up a tiny portion of GM’s fleet.

So far, GM has sold over 160,000 tax credit eligible cars and it thinks it will reach the 200,000 mark before the year is out.

The good news is that the tax credit doesn’t just stop cold turkey once an automaker hits the 200,000 mark. For six months after the full $7,500 tax credit ends, customers still get a $3,750 credit, then it goes down to $1,850 for another six months.

Sales of the Bolt and Volt could take a hit after it hits 200,000 cars, though, because Toyota, Nissan, and Ford are all well below the 200,000 figure. As a result, their star may rise once the tax credit shrinks for GM. But GM isn’t too worried.

“While there’s no doubt that the federal incentive has proved invaluable to attracting buyers to EVs, we’re offering compelling products and prices for our customers,” Elizabeth Winter, GM spokesperson, told CNN.

[source: CNN Money]