U.S. Senators Agree To EV Tax Credit Extension
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Senators Chuck Schumer and Joe Manchin have reached a deal that will see consumer EV tax credits included in a broader legislative package that contains roughly $369 billion worth of climate and energy spending.
The new tax credit plan is expected to do away with previously proposed provisions that would have offered additional tax credits to American EVs that were built in a unionized production facility. Instead, the tax credit will offer additional financial support to those who purchase an EV with batteries that contain a certain percentage of material from U.S. free trade partners, according to Global News. The legislation has yet to pass.
The Biden Administration’s proposed EV tax credit plan received pushback from a lobby of foreign automakers that included Volkswagen, Toyota, Hyundai, Nissan, Kia, Mercedes-Benz, Mazda, Subaru and Volvo, which claimed the plan would unfairly disadvantage non-unionized American workers. Tesla CEO Elon Musk also hit back against the proposal, saying it would unfairly disadvantage his company, which is the largest producer of EVs in America and operates non-unionized production facilities.
Manchin had also previously called the idea of incentivizing EV purchases with federal money “ludicrous,” given the current demand for new vehicles and inventory challenges that most automakers are facing. The new $700 billion agreement between Schumer and Manchin, dubbed the Inflation Reduction Act of 2022, includes various spending measures to help address climate change. In a statement released late Wednesday, the two senators said the investments mentioned in the legislation “will be fully paid for by closing tax loopholes on wealthy individuals and corporations.”
“The Inflation Reduction Act of 2022 will make a historic down payment on deficit reduction to fight inflation, invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40 percent by 2030,” the statement also said.
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Details of this package include $7500 credit for new and $4K for used up to $300K household AGI. Assuming GM doesn’t jack up prices, the Bolt and Equinox EV should be very compelling values. New credit can be applied at point of sale for registered dealers. This should really help increase sales of affordable electric vehicles.
Approx $19k for a new Bolt. It will be the best value of any vehicle on the market.
We both know GM is having or had a meeting and is like “we can charge more now”.
If EV’s were really so wonderful they wouldn’t have to pay people to buy them.
These cash incentives are paid to the car companies from the government and are coming right out of the pocket of Taxpayers to help finance the “Green New Deal” agenda and it will be a cold day in hell when I buy into that.
Agreed
Point of sale won’t start until Jan 2024
This would make me interested in an EV. Current prices tell me to go ICE, especially GM who’s ev’s don’t currently qualify.
More free $$$ for the people that LEAST need it.
Manchin must need a new Boat.
an no… IT WILL NOT BE PAID FOR BY THE WEALTHY!
This bill will destroy the poor and middle class again, we cannot afford it
This is big for GM. The $7500 Federal incentive gets restored and instead of a tax credit it sounds like it will be a point of sale rebate.
Where in the article does it say that?
Point of sale provision won’t begin until cars delivered after Jan 1 2024
You’ll know EVs are mainstream when they can outsell ICE variants without tax credits.
Why must the Federal government give credit and subsidies to imported EVs even if they are assembled in the U.S.? Only Ford, GM, Rivian, Tesla, and the other smaller domestic manufacturers should get such money!
Manchin was the last hope to keep this idiotic administration and Congress/Senate in check…there goes that hope! People in WV are just stupid people for voting for this idiot, especially when coal is huge and most people’s jobs in that state!
My future Blazer EV made in Mexico thank you for $7500 tax credit USA Government. I would give that money to finish the wall.
😂😂 the wall for the country that manufactures 6 of GMs vehicles?
Don’t forget another 19k for a new battery when needed and no place to dispose the old battery! It’s hard to believe that all the issues with owning a EV doesn’t register with people. Who can really understand the time and money to stop, charge your EV at what cost (?) for an hour or two and don’t forget the lines to get to the charging stations out in the middle of nowhere! Tomg
I’m tired of paying for everyone else’s EV’s!
More inflation on the way!
I expect GM and or Dealers to jack up prices on purpose. This time its supposed to be offerred at point of sale. If so that would mean one does not have to have taxes owed at Fed tax filing time which I think is a good think to some degree allowing more to participate and not just those who owe at least 7500 to the feds.
“Inflation REDUCTION Act.” What a load of cr*p. What could possibly go wrong with the Government’s experimental social policies?
As a side note. I knew Manchin would cave. It was just a matter of time.
If you want an EV it’s up to you and if it fits into you driving needs ,great ,get one . I like to know why ,as a taxpayer, need to give you a tax credit to get one. You must have already done your research and think by driving one is going to benefit you,fine , but leave me out of your purchase. It’s that simple.
Lets do the same for oil tax write off support. Leave me out of it.
Well,we use oil for a lot of other stuff ,too.
If you want an EV it’s up to you and if it fits into you driving needs ,great ,get one . I like to know why ,as a taxpayer, need to give you a tax credit to get one. You must have already done your research and think by driving one is going to benefit you,fine , but leave me out of your purchase. It’s that simple.
Manchin may be the biggest disappointment I have ever seen! Bye,Bye, USA
The fewer fossil vehicles on the road the less fuel tax (18.4 gas, 24.4 diesel )paid to fix our roads, that means a tax on something else…..It won’t be on EVs, they are getting a rebate. So what will the Government tax to fix our roads? Maybe food, property, income? Probably all of that and then still not fix our roads. Time for a change, time to drain the swamp….bring back Orange Man.
They will implement a Road-Use Tax to pay per mile. A GPS will track your Road usage. California floated this idea years ago. Currently on the back burner. Its just a matter of time.
The current gas taxes don’t generate anywhere near enough revenue to fill the gap left by decades of underspending on our roads… potholes, failing bridges, etc
Owners of an electric vehicle in some states could be forced to pay double, triple, or
even quadruple the amount that owners of new gas-powered vehicles pay in gas taxes.
CR..2019
That’s not going to happen with the current administration, it’s all about green energy and nothing will get in the way of promoting EVs, not taxes, not regulations, not supply chain issues, not public opinion and especially not common sense.
EV fees are already being charged in 26 states.
The MJF, Maximum Justifiable Fee is being used.
The MJF will vary by state. It is calculated for each state using the equation below:
MJF = Average Vehicle Miles Traveled/Fuel Economy Standard x State Gas Tax
Data source: Consumer’s Reports in there EV Fee analysis paper
Time for EV’s to start paying a federal and state Road Tax.
I’m tired of paying for your Government EV Charge Station. I’m tired of paying for yout EV Rebate.
Time for EV’s to start paying a federal and state Road Tax.
I’m tired of paying for your Government EV Charge Station. I’m tired of paying for yout EV Rebate.