U.S. House and Senate negotiators have agreed to spare the electric-vehicle tax credit as part of a compromise package on sweeping tax reform, according to a Republican familiar with process.
As part of the $1.5 trillion House tax bill, the $7,500 electric-vehicle tax credit would have been eliminated. The Senate bill doesn't drop it, and that is part of the package set for release, said the person, who asked not to be identified discussing the details before the bill is unveiled. The details may be released Wednesday.
The vehicle tax credit, adopted as part of the 2009 stimulus bill, helps automakers from Detroit to Yokohama betting big on an electric future with plans to spend billions of dollars on new pure-electric models to be rolled-out in the coming years despite limited sales of the vehicles to date.
Availability of the credit has been capped at the first 200,000 qualifying vehicles sold by each manufacturer. No automaker has reached that cap yet. Tesla Inc. sold about 127,000 Model S sedans and Model X crossovers through August, according to researcher IHS Markit.
Congressional analysts estimate repealing the measure could save $200 million over the next decade.