We reported a few days ago on the news that US House Republicans introduced a proposal to scrap the federal plug-in electric vehicle tax credit — which currently provides a tax credit of up to $7,500 to plug-in electric 
oltvehicle buyers in the US (with the credit varying based on battery pack size).
Since then, it’s been reported that the proposal has provoked a strong response from the auto industry — with lobbyists in Washington now working to save or salvage the federal EV tax credit, considering it to be “critical” to the rapid commercial adoption of the tech.
Notably, GM and Nissan — together accounting for a large proportion of plug-in electric vehicle sales in the US through the Nissan LEAF, the Chevy Volt plug-in hybrid, and the Chevy Bolt EV — have now both released public statements on the matter.
Automotive News provides more: “Industry officials had understood that all tax deductions and credits — including the one for EVs championed by President Barack Obama — might be on the table for elimination as House Republicans developed their long-awaited tax plan. Senate Republicans are developing their own plan to overhaul the tax code.
“…The Electric Drive Transportation Association, which represents automakers, suppliers, energy companies and technology developers, is going to collaborate with members and other stakeholders to make the case that eliminating the tax credit ‘is pound foolish’ and ‘work with folks in the Senate to make sure they don’t follow the same path,’ President Genevieve Cullen told Automotive News.
“‘If the whole underpinning of tax reform is to promote jobs, investment and innovation, the credit is doing exactly that,’ she said, pointing to the fact that more than 215,000 people are employed in EV development. … The association also will make it clear to policymakers that the US could quickly lose its lead in vehicle electrification at a time when China has announced aggressive sales targets for EVs and Europe is encouraging electrification, Cullen said.”
As an explanation of what Cullen is getting at here, GM currently plans to launch at least 20 new all-electric or hydrogen fuel cell vehicles (globally) by 2023; Ford plans to release 13 electrified vehicles over the next few years; Tesla’s sales and the rapid growth of recent years have of course been helped by the existence of the credit; Nissan is continuing to improve its electric offerings thanks to growing sales aided by the federal credit; etc.
The point being that, as noted by Cullen, the federal tax credit has proven itself effective with regard to spurring rapid growth and development in the electric vehicle sector in the US.
Featured image credit: Kyle Field | CleanTechnica
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