Electric Vehicle Demand Likely To Drop If Tax Credit Ends: U.S. Official - FbiCables Network | The News that Shapes World Opinion

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Wednesday, March 13, 2019

Electric Vehicle Demand Likely To Drop If Tax Credit Ends: U.S. Official


FILE PHOTO:  A charging port is seen on a Mercedes Benz EQC 400 4Matic electric vehicle at the Canadian International AutoShow in Toronto
FILE PHOTO: A charging port is seen on a Mercedes Benz EQC 400 4Matic electric vehicle at the Canadian International AutoShow in Toronto, Ontario, Canada, February 13, 2019. REUTERS/Mark Blinch
March 13, 2019
HOUSTON (Reuters) – Electric vehicle demand is likely to drop if the United States eliminates a tax credit worth up to $7,500 as President Donald Trump has proposed, a senior U.S. Transportation Department official said on Tuesday.
The White House said on Monday that nixing the credit, which phases out after companies hit 200,000 vehicles sold, could save taxpayers $2.5 billion over the next decade. Automakers have pushed for the credit to be extended.
“As you take away some of these incentives, demand will likely come down a bit,” Derek Kan, the Transportation Department’s under secretary of transportation for policy and a former Lyft Inc executive, said at the CERAWeek energy conference in Houston. “When you take away a tax credit, we know from basic economics demand will likely fall because the price is a little high.”

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