Several automakers, including Tesla, GM, and Nissan, have joined forces with other players in the electric vehicle space to launch a “coalition” with the aim to “reform and recharge” the electric vehicle tax credit.

The situation around the federal tax credit for EVs is weirder than ever right now.

As Tesla hit the 200,000 delivery threshold to initiate the phase-out, there are two different legislative efforts to change the program.

Last month, a Republican senator introduced a new bill to end the $7,500 federal tax credit for electric cars and tax them even more instead.

But a few days later, another Republican senator proposed a new bill to remove the federal tax credit cap for EVs and expand it to 2022.

Republican Senator Dean Heller, who introduced the pro EV tax credit bill that would see it extended instead of capped, was defeated in the mid-term elections earlier this month.

With those two distinct bills, the Democrats regaining control of the House, and Republicans expanding their majority in the Senate, it’s really unclear what will happen of the EV federal tax credit.

The new coalition is pushing for a clear reform that would see the cap lifted, which would be particularly good for Tesla, who already hit it, and Nissan and GM, who are about to hit the cap.

They wrote in a press release and new website launched today:

“The original electric vehicle tax credit, which goes directly to consumers not manufacturers, catalyzed the market, increased consumer awareness and grew a nascent industry. To promote continued market growth and stabilization, members of the EV Drive Coalition are advocating for reform to lift the current cap on the number of consumers who can take advantage of the credit through each manufacturer.”

Several other well-known companies are part of the coalition including, ABB, ChargePoint, Plug-in America, Proterra, and Volta.

Here’s the full press release:

EV DRIVE COALITION LAUNCHES TO REFORM & RECHARGE ELECTRIC VEHICLE TAX CREDIT Urges Congress to pass electric vehicle tax credit reform Washington, D.C. (November 13, 2018) – The EV Drive Coalition, a broad coalition with a focused goal to reform the federal electric vehicle (EV) tax credit, today announced its official launch as Congress convenes for its lame duck session. The EV Drive Coalition brings together a diverse group of industry, consumer and environmental stakeholders with a single unifying mission: encourage passage of legislation reforming the federal electric vehicle tax credit to ensure that it works better for more consumers for a longer time frame and spurs increased growth of the U.S. EV market. The original electric vehicle tax credit, which goes directly to consumers not manufacturers, catalyzed the market, increased consumer awareness and grew a nascent industry. To promote continued market growth and stabilization, members of the EV Drive Coalition are advocating for reform to lift the current cap on the number of consumers who can take advantage of the credit through each manufacturer. “Arbitrary constraints with the federal credit limit consumer options and make it harder for consumers to purchase the cars they want,” explains Joel Levin, Executive Director of Plug In America. “Lifting the cap would create a more level playing field for all manufacturers, giving consumers the freedom to decide which car they want in a free and fair market. Increased competition spurs more American innovation and technology” “A federal tax credit to help make electric vehicles more affordable for all consumers is integral to reaching a zero emissions future and establishing the U.S. as the leader in electrification,” said Dan Turton, Vice President, Public Policy at General Motors North America. “We feel that the tax credit should be modified so all customers continue to receive the full benefit going forward.” “A reformed tax credit will affect more than those who purchase electric vehicles,” reassured Janet Peace, Senior Vice President at Center for Climate and Energy Solutions. “While a mature EV market will be a boon to the American economy, it will also play a major role in reducing greenhouse gas emissions, a significant contributor to climate change. This would be a win for consumers, for the economy and the for environment.” “We’ve been able to make tremendous strides in the underlying technology of electric vehicles. The battery power and the range have improved significantly over the last few years. With every new advancement, we get closer to becoming an economically sustainable market. However, we’re not there yet, and keeping the cap will have a negative impact on a sustainable U.S. electric vehicle market,” explained coalition spokesperson Trevor Francis. This is an urgent issue. Choosing not to reform the tax credit will severely hinder America’s ability to compete in a global market. “At that point, it wouldn’t be just an automotive issue. As it stands now, electric vehicles are responsible for nearly 300,000 jobs. This a is jobs issue and an economic issue in addition to a consumer issue,” emphasized Francis. A reformed electric vehicle tax credit will ensure the domestic manufacturing, infrastructure and market of electric vehicles continues to grow. Electric vehicles are the way forward and the EV Drive Coalition will work to ensure a flourishing, mature and cost-competitive U.S. EV market. To learn more about the coalition, its members, its mission and the proposed legislation, visit www.evdrivecoalition.com/home.

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