Loren McDonald writes about the factors driving adoption of electric vehicles and the opportunities and challenges the transition to EVs presents companies and entrepreneurs in the auto, utility, energy, retail and other industries. In 2019, Tesla generated $594 million in revenue by selling these highly profitable tax credits. Anyone who purchases a Tesla in any state can get $7,500 knocked off their federal tax bill as a credit. by Loren McDonald. Currently, in the US, five PHEVs would meet a 28 mile EPA range minimum: he upcoming Toyota RAV4 PHEV, with an expected 39 miles of range, and Ford Escape PHEV, with an expected 30 or 31 miles, would make the cut for a total of seven eligible PHEVs. But the tax credit, which reduced to $3,750 a car in 2019, has ended completely. One (among may) of the ways to reduce the negative bias by many against the tax credit and then actually design it to more strategically increase EV sales is to implement similar range and MSRP requirements as California has done. There are also many state-specific tax credits, rebates and other incentives. Tesla blew past the ceiling for tax credits on electric cars in 2018, and that makes the final date to qualify for the remaining tax rebate Dec. 31 this year. The Tesla CEO tweeted out a reminder that federal tax credits for buying a Tesla will drop by half on July 1. The rate is currently set at 26% in 2021 and 2022, and 22% in 2023*. To apply for a CVRP rebate and for additional eligibility … Tesla’s regulatory credits revenue reached the highest at nearly $600 million in 2019, a record high for the company on an annual basis since the start of regulatory credits sales. For the second half of 2019, the tax credits for Tesla EVs were just $1,875. Effective December 3, California’s Clean Vehicle Rebate Project will see two key changes, with the net effect being that 13 currently available electric vehicles will no longer be eligible for rebates. But I strongly believe that the two changes in vehicle eligibility criteria were overdue anyway, and in fact, could and should serve as a model for changes to the federal EV tax credit. All Rights Reserved. General Motors, which sells the Chevy Bolt, will see its $1,875 rebate reduced to zero on March 31. Tesla has actually hit their 200,000 are delivered in the US so this tax credit is going to begin to its phase-out period. As background, the Clean Vehicle Rebate Project (CVRP) promotes clean vehicle adoption in California by offering rebates of up to $7,000 for the purchase or lease of new, eligible full electric (BEV), plug-in hybrid electric (PHEV), and fuel cell electric (FCEV) vehicles, as well as zero-emission motorcycles. The current average and median MSRP of EVs available in the US is roughly $53,000 and $40,000, respectively. California's new electric vehicle (EV) incentives for the lower income help them improve air quality and fight climate change by going electric. At the current levels, this equates to a cap of $47,500, at which 27, or 61%, of the currently available EVs would qualify. Got a confidential news tip? Ensure You Receive the Full 26% Solar Tax Credit and Additional Incentives For Going Solar In 2020! By Mia Yamauchi. The incentive amount is equivalent to a percentage of the eligible costs. A low- or moderate-income EV customer who purchases a non-Tesla or GM vehicle can qualify for up to $13,500 in state and federal incentives before the … And I understand those views. 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