What Happens When GM and Tesla Hit The EV Tax Credit Cap This Year?

By Jeff Cobb Tesla and General Motors have advanced the U.S. plug-in market by selling more vehicles than anyone else, and they will be first to hit a 200,000-unit federal tax credit cap this year.
Under IRS rules, after an automaker sells 200,000 PEVs, a four-quarter phase out period follows at a certain point which sees consumer credits of up to $7,500 per vehicle go away. When the tax credit eligibility ceases, if no extension is granted, Tesla and GM will lose a selling advantage other automakers will retain.
Fair or Unfair?
When the major manufacturer plug-in market began in the 2011 model year,

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