Plug-In Electric Vehicle Tax Credit for Eligible Consumers Begins Phaseout April 1
General Motors has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the fourth quarter of 2018, triggering a phaseout of the tax credit available for purchasers of the vehicles. The phaseout begins April 1, 2019.
Qualifying General Motors vehicles are eligible for a $7,500 credit if purchased before April 1, 2019. Beginning April 1, the credit will be $3,750 for eligible vehicles. On Oct. 1, 2019, the credit will be reduced to $1,875 for the next two quarters. After March 31, 2020, no credit will be available.
The plug-in electric drive motor vehicle credit was enacted in the Energy Improvement and Extension Act of 2008 and subsequently modified in later law. It provides a credit for eligible passenger vehicles and light trucks. By law, five quarters after reaching the sales threshold, the credit ends for the manufacturer.
For more details see Notice 2019-22 on the IRS website.