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California Considers Additional $2,000 Electric Car Incentive: Total $4,500
California weighs higher subsidies for EVs.
Bloomberg reports that California will hold a hearing this week about increasing incentives to buy plug-in cars from the current $2,500 to $4,500.
One of the reason is that some plug-in car manufacturers already hit or soon will hit the federal tax credit limit of 200,000 vehicles sold, which starts the phase-out of $7,500 federal tax credit (it will decrease by 50% for up to six months and then to 25% for another six months, before drying out completely).
Tesla already reached 200,000 in July, while GM is expected to sell its 200,000th plug-in electric car in U.S. several months from now.
Source : insideevs.com