Tesla Hits 200,000 EV Threshold – Buyers’ Tax Incentives Will Drop

Tesla has delivered 200,000 electric vehicles (EVs) to buyers in the United States, reaching the tax credit threshold established under the major Republican tax overhaul plan passed last year. Congress established a decreasing federal income tax credit with $7,500 as a financial incentive for buyers of electric vehicles only for the first 200,000 vehicles sold by an automaker. Once reached, the tax credit will be cut 50 percent for that automaker every six months until it phases out. This will disadvantage General Motors as well as Tesla, which is expected to hit the 200,000-car threshold with its line of electric vehicles soon, while buyers of EVs from other companies, such as Mercedes-Benz, BMW and Audi that bring their electric cars to market later, will receive the full incentive. Reuters