U.S. must reform federal electric vehicle tax credit

Every day, more Americans are making the choice to buy an electric vehicle. The reasons are as varied as there are drivers. Some want cleaner cars. Others want the incredible driving experience that EVs provide. Still others like having the latest in automotive technology.

The market is responding to the growing demand. Automakers are going all-in — with more than 100 makes and models slated to hit showrooms over the next five years. Batteries are performing better than ever. And there’s unprecedented investment in charging networks across the country.

Yet, the reality is that the market for EVs in the United States is still in its early days, and the federal direct-to- consumer tax credit continues to be a crucial catalyst for the purchase of EVs.

In its current form, the credit provides American drivers with a $7,500 incentive to purchase a qualifying electric vehicle. The credit begins to phase out once a manufacturer sells 200,000 vehicles, creating uneven incentives and essentially limiting the pool of available vehicles. If the plug-in vehicles tax credit goes unchanged, or worse completely repealed, consumers will see less vehicle choice, with many EV models out of reach.

Given the highly competitive global marketplace, this tax credit remains a critical part of making the domestic market for EVs stronger, but it must be reformed. That’s why ChargePoint has joined with environmen- tal, automotive and consumer stakeholders as part of the EV Drive Coalition. Together, we are making the case for reforming the tax credit to apply evenly among all vehicle models and brands. Reforming the manufacturers cap will provide market certainty and ensure car buyers can choose from a wide range of electric options.

Automobiles have been an historic and essential element to our American economy and culture. From trucks to lowriders, muscle cars to SUVs, America has always led the world in automotive innovation, design, and technology, a position that we should continue to embrace. At a time when there is unprecedented global competition, we must maintain American leadership at home and abroad.

California, too, has led the way with sales of approximately 380,000 electric vehicles since 2011. With Gov. Jerry Brown’s goal of 5 million electric vehicles on the road by 2030, we must do everything in our power to make these cars affordable and accessible to more people. Reforming the existing tax credit will play a significant role in ensuring we hit this target.

But American leadership in this sector is at risk. Economies in Europe and Asia — from London to Beijing — are using their policy levers to accelerate the shift to EVs. The world is acting, and we must continue to lead the way.

To maintain our position as a global automotive leader, the United States must step up as well. Electric and alternatively fueled vehicles are already di- rectly responsible for nearly 300,000 jobs across 48 states. Reforming the tax credit will ensure this industry — and the economic opportunities associated with it — continue to grow.

The economic and environmental benefits of electric vehicles are clear. The risks associated with inaction are staggering. The United States cannot afford getting left behind in this hyper- competitive global market. A reformed tax credit will strengthen our domestic market, encourage innovation and allow the United States to maintain its leadership position in an industry that will only continue to grow. Anne Smart is vice president for public policy for ChargePoint, an electric vehicle charging network.