Published on October 3rd, 2016 | by James Ayre0
France Considering Purchase Price Limit On EV Incentives
Perhaps following in the footsteps of other governments, the government of France may institute a base-price limit on electric vehicles eligible for the country’s purchase incentives, according to recent reports.
The proposed limit is reportedly ~$56,000 — which would mean that the Tesla Model S sedan and Model X SUV would no longer be eligible for the county’s purchase incentives. The Model 3, of course, would still likely fall under eligibility. Of course, the top-selling electric vehicle (EV) in the country, the French-made Renault Zoe, would pass the test, even the new version with much-boosted range.
Autoblog provides more: “France may make further tweaks as it looks to balance the effort to spur green-vehicle purchases without milking government funds. On one hand, France may take away the hybrid-vehicle incentive (worth about $840). On the other hand, France may add about $4,500 in perks for electric-vehicle buyers who retire diesel vehicles that are more than 10 years old. Either way, France would be following up similar efforts by both Germany and the state of California. Germany earlier this year adopted a $1.4 billion electric-vehicle incentive program that provides about $4,500 in perks to EV buyers, provided that those vehicles cost less than $67,000.”
Continuing: “California took a slightly different tack last year by basing the perk – or lack thereof – on the prospective buyer’s income level, not the price of the car. Under the Golden State’s rules, individuals making more than $250,000 a year, or couples making more than $500,000, no longer qualify for the $5,000 state-funded electric-vehicle perk.”
That’s an approach that makes more sense to me. If someone can stretch their income to afford a Tesla Model S despite the high cost but they have the same income level as someone going with a less-expensive Nissan Leaf, why shouldn’t they get the same discount? Capping incentives based on personal income levels seems prudent.