GM hits phase-out trigger for plug-in vehicles tax credit
Big Three automaker General Motors has sold more than 200,000 cars that are eligible for the plug-in electric drive motor vehicle credit during the fourth quarter of 2018, triggering a phase out of the credit for taxpayers of new GM plug-ins beginning April 1, according to the IRS.
The service said that qualifying vehicles by the manufacturer are eligible for a $7,500 credit before April 1. Starting on that date, the credit will be $3,750 for General Motors’ eligible vehicles.
On Oct. 1, 2019, the credit will be reduced to $1,875 for the next two quarters. After March 31, 2020, no credit will be available.
The plug-in credit was enacted in the Energy Improvement and Extension Act of 2008 and subsequently modified in later law. It provides a credit for eligible passenger vehicles and light trucks. By law, five quarters after a manufacturer reaches the sales threshold, the credit ends for its vehicles.
Rival electric carmaker Tesla reached a similar phase-out after sales in the third quarter of 2018.