New EV tax credits will happen but the House and Senate versions must get reconciled.
On Friday, the US House has details in its proposed EV tax credits.
The current EV tax is a $7,500 tax credit for the first 200,000 electric vehicles per manufacturer. Tesla has built more than 200,000 EVs. The new EV program will run two years past the point when 50% of all new cars are electric.
Remove the 200,000 vehicles per manufacturer cap
Keep the $7,500 incentive for new electric cars for 5 years
Make the $7,500 incentive a point-of-sale discount instead of tax credit
EVs with battery pack smaller than 40 kWh are limited to a $4,000 incentive
Add an extra $4,500 for EV assembled at union factories
Add $500 for EVs using battery packs with 50% of components (including cells) are made in the US
After the first 5 years, the $7,500 becomes only for US-made electric vehicles and it applies for another 5 years.
Price limits on the EVs eligible for the incentives:
Sedans under $55,000
SUVs under $69,000
Pickup trucks under $74,000
Vans under $54,000
Credits only for those with an adjusted gross income of up to $400,000 for individuals and up to $800,000 for joint filers.
Last month, the Senate in a non-binding amendment narrowly voted in favor of prohibiting taxpayers from claiming EV tax credits if they make more than $100,000 annually or if vehicles cost more than $40,000.
Tesla EVs would get $8,000 tax credits under this plan.
I think the expanded EV tax credit proposal will pass in 1-3 months. The US wants to ensure they are a major player in the future auto industry. The future auto industry will be all electric. The $4500 advantage for Ford, GM and Stellantis will not save them. They currently have a $7500 tax credit advantage.
SOURCES- Reuters, Electrek
Written By Brian Wang, Nextbigfuture.com (Brian has shares of Tesla)
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.
9 thoughts on “Details of House EV Tax Credit Proposal”
ICE car makers could go with 10kWhr batteries in a plug-in hybrid, get their customers a $4000 credit PLUS $4500 for buiding in union factories. For the same amount of batteries, they can build 5x to 8x as many cars as a full EV with the same max range.
For typical commuting it could be nearly as 'green' as a full EV charged off average grid power, by running the ICE engine at optimal speed to generate electric power as efficiently as possible.
"Add an extra $4,500 for EV assembled at union factories"
This will not entice Tesla to go union. No owner wants to go union.
As for the possibility of Tesla losing sales to unionized companies, I highly doubt it. Tesla is far less constrained than other companies, and actively working to relieve those constraints.
On the whole there is no positive environmental impact from these vehicles. They are just faux green. We should not be paying for people to drive them.
An interesting compromise with union factories. Very pro Tesla. Even China made Teslas included up front – note GM currently imports models like Buick Envision from China. An incentive to mix imported and domestic cells to get the 50% $500 on all packs Tesla sells in US.
If it passes, even the $4500 Union factory bonus might tempt some accommodation. A 40kw/hr $25,000 Tesla Model 2 or Model Z Assembled in a US Union plant from Tesla China made components with a 51% mix of US made components in it’s battery pack, would cost $12,500 before State incentives or FSD software.
"The US wants to ensure they are a major player in the future auto industry."
US hasn't been a major player in the US auto industry for 40 years.
I mean sure the costs of meat and housing are going straight through the roof but families earning $800k gotta get a discount to motivate them to buy a EV.
Why aren't sub $40k EVs free? I mean that would save the planet super fast and we are talking about avoiding human extinction here!
Free money! BTC to $100k!
Printer go brrrrrrrrrrrrrrrrrrrrrrr
Why not give $10,000 credits?
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