The EV Drive Coalition, a broad coalition, including Tesla, GM, and Nissan, with a focused goal to reform the federal electric vehicle tax credit, announced its official launch as Congress convenes for its lame duck session.
The EV Drive Coalition brings together a diverse group of industry, consumer and environmental stakeholders with a single unifying mission: encourage passage of legislation reforming the federal electric vehicle tax credit to ensure that it works better for more consumers for a longer time frame and spurs increased growth of the U.S. EV market.
The original electric vehicle tax credit, which goes directly to consumers not manufacturers, catalyzed the market, increased consumer awareness and grew a nascent industry. To promote continued market growth and stabilization, members of the EV Drive Coalition are advocating for reform to lift the current cap on the number of consumers who can take advantage of the credit through each manufacturer.
“Arbitrary constraints with the federal credit limit consumer options and make it harder for consumers to purchase the cars they want,” explains Joel Levin, Executive Director of Plug In America. “Lifting the cap would create a more level playing field for all manufacturers, giving consumers the freedom to decide which car they want in a free and fair market. Increased competition spurs more American innovation and technology”
“A federal tax credit to help make electric vehicles more affordable for all consumers is integral to reaching a zero emissions future and establishing the U.S. as the leader in electrification,” said Dan Turton, Vice President, Public Policy at General Motors North America. “We feel that the tax credit should be modified so all customers continue to receive the full benefit going forward.”
“A reformed tax credit will affect more than those who purchase electric vehicles,” reassured Janet Peace, Senior Vice President at Center for Climate and Energy Solutions. “While a mature EV market will be a boon to the American economy, it will also play a major role in reducing greenhouse gas emissions, a significant contributor to climate change. This would be a win for consumers, for the economy and the for environment.”
“We’ve been able to make tremendous strides in the underlying technology of electric vehicles. The battery power and the range have improved significantly over the last few years. With every new advancement, we get closer to becoming an economically sustainable market. However, we’re not there yet, and keeping the cap will have a negative impact on a sustainable U.S. electric vehicle market,” explained coalition spokesperson Trevor Francis.
This is an urgent issue. Choosing not to reform the tax credit will severely hinder America’s ability to compete in a global market. “At that point, it wouldn’t be just an automotive issue. As it stands now, electric vehicles are responsible for nearly 300,000 jobs. This is a jobs issue and an economic issue in addition to a consumer issue,” emphasized Francis.
A reformed electric vehicle tax credit will ensure the domestic manufacturing, infrastructure and market of electric vehicles continues to grow. Electric vehicles are the way forward and the EV Drive Coalition will work to ensure a flourishing, mature and cost-competitive U.S. EV market.