A federal tax credit has played a big role in speeding adoption of electric vehicles and plug-in hybrids, offering consumers up to $7,500 off their year-end tax bill if they buy a qualifying vehicle.
But Congress designed the credit to phase out as manufacturers established EVs as viable parts of their product line, setting a sales threshold that Tesla and General Motors passed a few years ago.
Rep. Dan Kildee (D-Mich.) is among the lawmakers who want to expand the credit as a way to keep encouraging electric vehicle sales as part of a broader climate strategy. Kildee has been fine-tuning a proposal with Sen. Debbie Stabenow (D-Mich.) and the White House to expand the credit.
In this week’s episode of our podcast, Talking Tax, reporter Kaustuv Basu speaks with Kildee about the future of the tax credit, how it fits into the Biden administration's infrastructure plan, and the move towards all-electric pickup trucks.
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