Tax Credit for GM Electric Vehicles Reduced

This month, sales of GM electric vehicles surpassed 200,000, which triggers a reduction in the federal tax credit that can be claimed for new purchases. More specifically, the full credit of $7,500 is reduced to $3,750 for sales in Q2 and Q3 of 2019. The credit will be $1,875 for Q4 of 2019 and Q1 of 2020; no credit will be available after that. Sales of Tesla’s electric vehicles reached this milestone last year; the IRS announced credit limits for its vehicles’ sales in 2019.