It wasn't too long ago we posted about the White House's proposed plan to entirely scrap the electric vehicle tax credits thereby saving $2.5B over the next decade. Clearly, the current administration is looking to cut the fat in certain areas.
Well, it turns out that not everyone is in agreement with that plan. In fact, an all-new bill with backing on both sides of the aisle is making some noise.
That's because it proposes even more EV tax credits to further incentivize buyers of electric vehicles.
So, what are we talking about here? This expansion would create a $7,000 tax credit for an additional 400,000 vehicles per automaker — this is ON TOP of the existing 200,000 allocation per automaker. In addition, the phase out will only take nine months as opposed to the current 15 month schedule.
This is estimated to cost $11.4B.
Given the so-called DEMAND for EVs, why is there a need to prop up the market in such a big way? In other countries that are selling EVs, once government-led incentives were backed out, the market fell apart.
Is THIS just another example of government officials simply propping up the EV market? Should they or shouldn't they EXTEND the EV tax credits?
Unsurprisingly, this bill has a ton of support from the manufacturers.
A bipartisan group of U.S. lawmakers introduced legislation on Wednesday to expand the electric vehicle tax credit by 400,000 vehicles per manufacturer, a provision that would give a boost to Tesla Inc and General Motors Co before the existing credit comes to an end for them...
...The existing $7,500 EV tax credit, which allows taxpayers to deduct part of the cost of buying an electric car, phases out over 15 months once an automaker hits 200,000 cumulative EV sales. GM saw its tax credit cut to $3,750 on April 1. Tesla’s tax credit fell to $3,750 on Jan. 1 and will end entirely at year’s end.
The bill dubbed the “Driving America Forward Act” would grant each automaker a $7,000 tax credit for an additional 400,000 vehicles on top of the existing 200,000 vehicles eligible for $7,500 tax credits. It would shorten the phase-out schedule to nine months...
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