The Biden Administration is considering a boost to electric vehicle adoption through new point-of-sale consumer EV rebates.
In a recent report from Bloomberg, White House Climate Advisor Gina McCarthy addressed President Biden’s electric vehicle plan, saying that Biden is “looking to invest more than $170 billion and he’s going to build out the electric charging stations that we need for consumers to buy these vehicles and feel confident that they can get where they want to go and back again.”
The Biden administration has proposed a multitrillion-dollar infrastructure plan that includes EV rebates, as well as 500,000 new electric vehicle charging stations.
While an existing tax credit of $7,500 is currently in place for some electric vehicle buyers, General Motors has already exceeded the 200,000-unit limit required for customers to receive the credit. However, while the existing tax credit is criticized as benefitting primarily wealthy buyers, the new point-of-sale EV rebate is believed to provide greater incentive for low- and middle-income buyers as well.
The Biden administration is framing the new EV rebate and infrastructure investment as necessary components to competing with China.
“The president is concerned that China is far ahead of us in the electric vehicle market,” McCarthy told Bloomberg. “Instead of producing the technologies of the future, we are importing them from somewhere else.”
President Biden previously announced plans to replace the existing federal fleet with new electric vehicles. It is estimated that the federal fleet currently encompasses some 645,000 vehicles, including trucks, SUVs, and cars. Of those 645,000 vehicles, just 3,215 are EVs. Replacing the entire federal fleet is estimated to cost upwards of $20 billion.
Many prominent voices in the auto industry, including General Motors and the United Auto Workers union, have called on President Biden to roll out new tax credits and EV rebates to help promote greater electric vehicle adoption. Some U.S. states have even pushed for an outright ban on the sale of new gasoline-powered passenger vehicles.