September 25, 2020

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    General Motors

    If Congress removes an electric vehicle tax credit it “will have an impact” on sales of U.S. electric automobiles such as General Motors’ Chevrolet Bolt, GM CEO Mary Barra stated on Monday.

    The House version of a bill that would cut corporate tax rates calls for removing a tax credit of up to $7,500 for buyers of electric vehicles. Auto industry and environmental groups are lobbying to save the credit as the House and Senate move to combine their versions of the tax overhaul legislation.

    Barra stated eliminating the tax credit would impact the way possible electric vehicle purchasers calculate the expense of owning one. “It changes the equation,” she told reporters during an event sponsored by the Automotive Press Association of Detroit.

    “I’m a supporter of that staying in” the tax code, Barra stated. “That’s what we convey to the administration.”

    The tax credit is in effect a subsidy for producers of electric vehicles, which can charge a higher cost for battery electric cars understanding the buyer will get a rebate from the government.

    General Motors

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