U.S. Senate Tax Plan Would Retain EV Credit

The tax reform plan unveiled on Thursday by the U.S. Senate would maintain the current $7,500 tax credit for buyers of electric vehicles.

The credit, touted by EV makers as essential to help establish a market for such vehicles, would be eliminated next year under the tax reform package announced a week ago by the U.S. House of Representatives.

The current credit is applicable to the first 200,000 EVs sold by a carmaker. No manufacturer has yet reached that volume. Producers are poised to add dozens of new electric models over the next four years. They say scrapping incentives at this point will make it tougher for EVs to break into the mainstream car market.