Biden GREEN Act Would Subsidize Tesla EV, Batteries and Solar

The text of the GREEN act renewable energy bill was released.

If it was passed in its current form it would subsidize Tesla for
* 400,000 cars at $7000 per car
* Battery energy storage at 30% of cost initially and then decreasing through 2028
* Extending solar energy subsidies at 30% through 2025 and then phasing out

The (GREEN Act) bill also extends the investment tax credit (ITC) for solar energy property at 30 percent through 2025, which phases down to 26 percent in 2026, 22 percent in 2027, and 10 percent thereafter. The bill uses the same phaseout timeline and percentages for geothermal energy property.

Application of the ITC is also expanded to include energy storage technology and linear generators at the 30 percent rate through 2026 and phases down by 4 percent each year in 2027 and 2028. The bill describes energy storage technology as that which uses batteries and other storage technology to store energy for conversion to electricity and has a minimum capacity of 5 kWh, or to store energy to heat or cool a structure. It further describes linear generators as that which converts fuel into electricity through electromechanical means using a linear generator assembly without the use of rotating parts with a nameplate capacity of at least 1 kW.

The bill also extends existing tax incentives available for the sale of electric vehicles. The bill increases the electric vehicle credit cap for manufacturers to 600,000 vehicles, but reduces the credit by $500 after the first 200,000 vehicles sold. This would replace the current phaseout period that begins with 200,000 vehicles sold, with a phaseout period that instead begins during the second calendar quarter after the 600,000-vehicle threshold is reached. At the start of the new phaseout period created under the bill, the credit is reduced by 50 percent for one calendar quarter and subsequently ends. For manufacturers that already passed the 200,000 threshold before the enactment of the bill, the number of vehicles sold in between 200,000 and those sold on the date of enactment are excluded in determining when the 600,000 threshold is reached.

SOURCES- Lexology
Written By Brian Wang, (Brian owns shares of Tesla)