When Congress passes a tax break for electric car owners
When Congress votes to boost electric car tax credits for states, the American Council for an Energy-Efficient Economy has the endorsement of a group of leading electric car manufacturers.
The ACEI says the $500,000 per person tax break will help encourage electric car ownership and build more electric cars in the United States, including in California.
The $500 million tax break goes into effect in 2020.
The group says it will benefit the roughly 4.5 million electric car drivers in the U.S., who have to pay $5,000 for each car they buy, and the estimated 1.2 million households that don’t own electric cars.
The tax break is also an important step toward the administration’s goal of helping the electric vehicle market, ACEII President and CEO Mark Weisbrot said in a statement.
The electric car industry is expected to grow from about 5,000 vehicles a year to about 10,000 by 2035, according to the National Association of Manufacturers.
The California tax break, which was introduced last year by Rep. Dave Camp, R-Mich., is also the most significant federal tax break that states have offered since 2009, when California began offering tax breaks to electric vehicle owners.
California’s electric vehicle tax credits will be phased out over 10 years, and then phased back to the current level, Weisbront said in the statement.
Weisbrett said the tax break helps drive electric car sales and help reduce CO2 emissions.
The incentives are designed to encourage electric vehicle ownership by offering incentives to automakers to build electric vehicles.
The credits are not subject to federal income taxes, Weizbrett and other members of the group say.
The American Council also backs California’s $500 per-person tax break.
The group has endorsed Camp’s plan to increase the electric car incentive for new cars.
Jerry Brown has been a strong supporter of electric vehicles and the tax incentives for the industry.
He said in January that California has been the best state to sell electric vehicles in the country.