The current $7,500 tax credit, which reduces the price of all-electric vehicles, phases out after an automaker has sold 200,000 EVs, a threshold only Tesla and General Motors have hit. The credit will be available to consumers buying an EV from other automakers until their cumulative EV sales reach 200,000. Congress decided late Monday not to raise that threshold to 600,000, while reducing the EV credit to $7,000. While rejecting the extension of the EV credit, Congressional negotiations allowed to credits for biofuels and wind and solar power to continue. Some analysts estimate that extending the ceiling for the EV credit to 600,000 could have raised sales of battery-powered cars by between 3 million and 6 million units.

Source: Forbes December 17, 2019 16:59 UTC