Legislators push to expand EV tax credit

If the bill passes, Tesla and GM would get a temporary reprieve from phasing out the incentive program.

Several US legislators have reportedly introduced a bill that would extend the electric vehicle tax credit.

The plan would raise the cap for EV credits to 400,000 vehicles for each automaker, giving a temporary reprieve to the current phasing out of the incentive program for several US companies including Tesla and General Motors, according to Reuters.

The bill is sponsored by a bipartisan group of Senators including Democrats Debbie Stabenow and Gary Peters and Republicans Lamar Alexander and Susan Collins, along with Representative Dan Kildee.

After hitting the current cap of 200,000 vehicles, Tesla began phasing out the incentives last year before the $35,000 entry-level Model 3 entered production. Tesla buyers currently receive half the original $7,500 tax credit.