In the market for a new eco-friendly vehicle? Breathe a sigh of relief – the federal tax incentive for electric vehicles isn't totally gone for the Chevy Bolt and other electric options from the American carmaker — yet.
As of Tuesday, Oct. 1, General Motors' tax credit was halved yet again from $3,750 to $1,875. The full federal credit is $7,500 for new electric vehicle purchases. General Motors, which has the Bolt EV and the now-discontinued hybrid plug-in Volt along with Cadillac options, will lose the tax incentive completely after March 2020.
The newest 2020 Chevy Bolt, coming out soon, has a 21-mile range increase from its predecessor, pushing it to a max battery range of 259 miles. Its starting price before tax incentives is $37,495.
As part of the tax deal, carmakers start losing the full $7,500 credit after selling 200,000 electric or partially electric vehicles. GM hit that milestone at the end of last year and has seen the credit slowly halved since.
Tesla hit the 200,000 mark before any other EV company back in mid-2018. That means the clock is ticking on any federal subsidies for Model 3, S, and X vehicles. By the end of the year it'll be gone for Tesla purchases.
SEE ALSO:Tesla's federal tax credit dropped, but other EVs still have the full amountEven if the federal tax credit is dwindling for the top EV brands — after Tesla and GM it's Nissan quickly approaching the 200,000 mark with its electric Leaf — state and local incentive programs are still available in many places.
So don't give up on an EV deal just yet. Plus, if you go ahead and make a purchase, you'll never pay for gasoline again with an all-electric option, which will end up saving you money in the long run.
TopicsTesla