The IRS announced today that General Motors, LLC has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the fourth quarter of 2018.
The success in sales during the fourth quarter of 2018 will result in a phase out of the tax credit available for purchasers of new General Motors plug-in electric vehicles beginning on April 1st, 2019.
Qualifying GM vehicles are eligible for a $7,500 credit if purchased before April 1st, 2019.
Beginning on April 1st, the credit will only be $3,750 and on October 1st the credit is further reduced to $1,875.
After March 31st, 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 200,000 sales threshold, the credit ends for the manufacturer.