New legislation to raise the electric vehicle sales cap for automakers from 200,000 to 400,000 cumulative sales was proposed by a group of bipartisan lawmakers, according to Reuters.
General Motors and Tesla both reached their respective 200,000 cumulative EV sales, which reduced the $7,500 electric vehicle tax credit, according to CNBC. The credit consumers receive for purchasing a Tesla fell to $3,750 at the start of 2019. The credit for GM's Chevrolet Bolt EV or Chevrolet Volt dropped to the same amount on April 1.
The provision would give both automakers a boost, and the proposal could be considered in the next few months, according to Reuters.
The Driving America Forward Act, introduced by Senators Debbie Stabenow (D-Mich.), Lamar Alexander (R-Tenn.), Susan Collins (R-Maine), and Gary Peters (D-Mich.), according to the Electric Drive Transportation Association.
Conversely, in March the Trump administration announced plans to cut the $7,500 federal tax credit as part of its 2020 budget proposal, and before this a bill to terminate the federal tax credit was introduced in October 2018 by U.S. Sen. John Barrasso (R-Wyo.).