The US government first began offering EV tax credits during the Bush administration and was later expanded by Obama. Currently, once an automaker sells over 200,000 EVs in the US, however, the tax credit amount gradually gets reduced. Tesla ran out of credits in late 2019 and GM in March 2020.
The 2021 version of the GREEN Act (an earlier version was introduced last June and failed) proposes a few changes to the EV tax credit system. Instead of a $7,500 tax credit, it’d be $7,000. Plug-in hybrids would qualify for less because they have smaller batteries and aren’t fully emissions-free. Also, the revised act increases the credit cap to 600,000 vehicles.