The wind-down of federal tax credits on plug-in vehicles begins to hit in 2019.
Tax credits for Tesla buyers were already reduced to $3,750 on Tuesday. The same reduction is scheduled to hit GM's plug-in models, the Chevy Volt and Bolt EV on April 1.
The reduction in the credits is likely to have an effect on sales, especially as GM has already announced that it will cease production of the Chevy Volt plug-in hybrid in March.
With New Year's and the lower credits starting this week, we felt this was a good time to ask our Twitter followers what effect they think the lower tax credits are likely to have on the plug-in sales.
Out Twitter poll for this week asks: "What effect will lower tax credits on Tesla and GM plug-ins have in the new year?"
What effect will lower tax credits on Tesla and GM plug-ins have in the new year?— Green Car Reports (@GreenCarReports) January 2, 2019
Among the options are:
- Fewer Tesla sales
- A rush on Chevy plug-ins including the Bolt EV and the discontinued Volt before their tax credit gets cut in April, and while Volts are still available at Chevrolet dealerships.
- An increase in plug-in vehicle sales from import automakers such as Audi, Jaguar, Hyundai, and Kia, which all have new electric models on the market or on the way for 2019, which are still eligible for their full tax credits.
- Or, some may argue that the expiring credits will have no effect, because Tesla buyers are wealthy enough and dedicated enough to buy those cars with or without a tax credit, and the GM may have killed the Volt due to slow sales and high discounts even without the tax credits expiring.
Click on over to the Twitter poll to let us know what you think. And remember that our Twitter polls are unscientific, because our sample size is not big enough to be nationally representative, and our respondents are self-selected.