EV sales have steadily risen in recent months - Belmont, in particular has seen relatively enormous growth in EV adoptions, including 11 new EVs in May alone - and the incentives available are likely a major part of that growth.
There is a federal tax credit worth up to $7,500 and a Massachusetts rebate of up to $2,500. Both, however, have limited lifespans, and we've seen incentives in other states already come to an end. Georgia, for instance, had a $5,000 tax credit prior to 2015, and it has since repealed that credit, while establishing a new $200 yearly fee for EVs (apparently to pay for lost gas tax revenues). As a result, EV sales have since dropped nearly 80% in Georgia. The federal tax credit, meanwhile, allows for a limited number of credits given to individual car manufacturers, and Tesla and GM are on pace to reach their limits next year.
That said, the incentives globally continue to be strong, and EV adoption in high-carbon countries like China and India is soaring. A dozen U.S. states (including MA), representing a third of the country's population, has signed on to a new alliance aiming to continue, or even exceed, the Paris Agreement objectives. At the end of the day, the global market should keep US manufacturers on an EV-friendly trajectory, particularly with consumer, government (state support remains largely stronger than ever), and business demand fueling EV market growth. One way or another, there remains little doubt that EVs will continue to take over the auto market.
Read more: http://www.fleetcarma.com/ev-tax-incentive-impact-electric-automakers/