On Monday, Larry Kudlow who is the economic advisor of the White House stated that the administration of the President of United States is willing to end the subsidies for the electric cars as well as the other items which is inclusive of the renewable sources of energy.
After the announcement of the General Motors last week that it will be closing three manufacturing units in the United States, the White House was questioned regarding the plans.
To this Kudlow stated that about $2500 to $7000 tax credit for all the consumers who purchase the electric vehicles which is of the plug-in type is under the federal law.
And this amount is inclusive of the purchases which are made by the General Motors.
Kudlow further stated that as a matter of the policies of the United States, the White House is willing to end all the subsidies.
He also said that the subsidies which were started by the administration of Obama are also being ended whether they are for renewable sources of energy or so forth.
When Kudlow was questioned about the time, he said that the subsidies are going to end in the future but he cannot say that whether it will be 2020 or 2021.
The capping of the subsidies by the Congress is at the rate of 20,000 vehicles per manufacturer and after this level is achieved the subsidy subsidies.
As per the announcement made by the General Motors, it will be hitting the threshold somewhere near the end of 2018 which therefore means that as per the current law the tax credit scheme for the company will end by 2020.
However, according to the analysts, the policy cannot be changed by the White House unilaterally.
But the president of the United States, Donald Trump has already threatened General Motors to eliminate the subsidies for the company.
Source: Reuters, Investing
