Ever since President Joe Biden took over the White House and the Democrats achieved a majority in both the House and the Senate, they have made it clear that they plan to reform the federal EV incentive program with the updated ‘Build Back Better’ proposal. The framework doesn’t include the details of the program
The main flaw in the current program is that it caps the $7,500 tax credit to 200,000 electric vehicles per manufacturer. It puts automakers who were early proponents of electric vehicles, like Tesla and GM, at a disadvantage. The original proposal included the removal of the cap.
The second biggest problem is that the incentive takes the form of a $7,500 tax credit, which requires you to have the equivalent federal tax burden, and it is only applied on your next taxes. The framework’s electric vehicle tax credit will lower the cost of an electric vehicle that is made in America with American materials and union labor by $12,500 for a middle-class family.
Read the article at Electrek.
