US tax incentives supporting fuel cell vehicles will expire at the end of this monthDecember 8, 2014
Tax incentives that aid in the adoption of clean vehicles may be expiring at the end of December
Automakers developing fuel cell vehicles may soon find the United States to be a turbulent market. Numerous financial incentives that had helped support the adoption of clean vehicles, including those equipped with hydrogen fuel cells, will expire at the end of the month, unless Congress chooses to renew them. These incentives have helped lower the cost of clean vehicles for consumers, making them more attractive to those that are interested in clean transportation.
Current tax incentives have aided the adoption of fuel cell vehicles
With the current tax incentives in place, consumers purchasing plug-in electric vehicles can receive an income tax credit of as much as $7,500. The incentives offered to those purchasing fuel cell vehicles can be more generous, but are also somewhat more complicated. Incentives for light-duty fuel cell vehicles can be as high as $4,000, with an additional $4,000 credit available for vehicles that exceed fuel economy standards established in 2002. There are other incentives offered to those interested in fuel cell vehicles as well, depending on the type of vehicle being purchased.
Congress is currently focused on major issues that may detract attention from tax incentives for clean vehicles
Congress has given no clear sign that it will renew these tax incentives or allow them to expire. There are only a few days left in the current Legislative session, which means that lawmakers will have to move quickly if they do want to renew these incentives. There are various issues that are taking up time in Congress, such as funding for the entirety of the government, which may affect the focus that the current tax incentives receive.
Lack of tax incentives may make fuel cell vehicles a hard sell for consumers
Without some financial incentives, fuel cell vehicles may have trouble finding traction in the United States. If the incentives expire, fuel cell vehicles will become somewhat more expensive, making them unattractive to consumers. Expired incentives will also have an impact on the attractiveness of other electric vehicles.