Federal tax credit for Tesla buyers is coming to an end when 2020 hits

If you’re interested, you better hurry.

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By the end of December 2019, a rather attractive subsidy for Tesla electric vehicle buyers will plummet to zero. In case you didn't know, a previous government incentive program allowed for a $7,500 subsidy for all electric vehicles. From July to December of this year, though, that subsidy shrunk to $1,875 for Tesla owners.

Why did the federal credit program exist in the first place? — In simple words, to incentivize buying electric vehicles. A few states have attempted to encourage purchasing these vehicles in the shape of rebate. If it's a rebate, a customer can claim a reduction in price for their solar systems. As for tax credits, these are claimed when people file their income taxes.

From Arizona, California, Colorado, Nevada, New Jersey to Utah, Washington, Texas, and other states, local governments have tried both cash-based and non-cash incentives for electric vehicles.

Politicians and companies aren't happy — According to The Detroit News, General Motors, which is also affected by the ending of this federal tax credit, slammed the ending of the program. "This is a missed opportunity to further advance electrification in the United States," the company officially stated. "The EV tax credit provides a proven pathway to establish the U.S. as a leader in electrification, helping make electric vehicles more accessible for all customers."

Democratic Sen. Debbie Stabenow also criticized the ending of the federal program. Per Detroit News, Stabenow stated, "President Trump promised to invest in Michigan workers, but just (last) week, we saw the opposite."

"On Monday, he blocked the next generation of vehicles and technology by saying no to the electric vehicle consumer tax credit,” Stabenow added. “I want these clean energy jobs here in Michigan, not China."