A significant shift in the U.S. electric vehicle landscape may be imminent as the Senate advances a budget bill that would eliminate federal tax credits for EV buyers after September 30th. The proposed legislation targets both the $7,500 credit for new electric vehicles and the $4,000 credit for used EVs, prompting electric vehicle advocates to voice their concern. In addition, the bill cuts penalties for automaker’s that fail to meet Corporate Average Fuel Economy standards.
Per a report from Reuters, the Electrification Coalition, an electric vehicle nonprofit group, argues that discontinuing these incentives could stall domestic electric vehicle adoption and hinder the U.S.’s ability to compete globally, in particular against China, which continues to lead in battery production and electric vehicle sales. Additionally, clean transportation non profit Calstart says that deleting the electric vehicle tax credit will jeopardize American jobs tied to the clean vehicle economy.
Ford has also been vocal in its opposition. The automaker warned that the loss of tax credits may threaten its $3 billion battery plant project in Marshall, Michigan. The facility is currently 60 percent complete and expected to create roughly 1,700 new jobs.
The bill also includes a battery production tax credit specifically structured to exclude Chinese firms, thus reinforcing domestic supply chains. Additionally, the legislation would repeal fines for automakers that fail to meet Corporate Average Fuel Economy (CAFE) standards.
As noted by Reuters, GM was hit with $128 million in CAFE penalties in 2016 and 2017, while Stellantis was handed nearly $400 million in CAFE penalties between 2016 and 2019.
The bill’s future now rests with the U.S. House of Representatives. As reported by Automotive News, the National Automobile Dealers Association (NADA) is urging Congress to keep the credits in place as a means of decreasing EV inventory.
“Dealers are still carrying a high EV inventory with approximately 140,000 EVs currently on dealer lots,” NADA states, per Automotive News. “If EV tax credits are going to be repealed, NADA urges Congress to include a reasonable transition period.”
Comments
Why subsidize an EV over ICE??? Makes no sense!
Because people don’t like change. Especially the uneducated.
Yeah f@#$ me for not wanting to spend Cadillac money for a Chevrolet just because it has to have a costly battery pack despite because somebody decided we needed to change.
Car ownership in America is a NECESSITY NOT A LUXURY. You cannot force people to spend Cadillac prices when it has been hard enough for Americans to get by no thanks to policies the same self-interested nitwits in power that claim to care about the working class.
You clearly have not looked at the price of new EV’s Many are priced very similarly to their ICE counterparts. Cost is an old argument from the uneducated.
$100,000 is similar to ICE counterparts that also cost $100,000.
No, we don’t like Mandates. We do what we want to do and make sure we are able to do what we want in the “Land of the free”, now that we have a free country back again.
look out.. your not free for long,
The oil industry is heavily subsidized already.
Bull and you know it. Stop purveying lies.
Oil does not receive nearly the subsidies that green energy and EV’s receive.
how is the oil industry subsidized? we can’t even get democrats to fund the military, but they can fund solar power research!
Drill baby drill
drill baby drill is way cleaner then dig baby dig!
We subsidize to advance the technology, to create an additional industry to grow our economy. If those in charge are so set on remaining in the past, allow the Chinese into the country and let the market decide. I think you’ll all be shocked just how far advanced they are. just a thought
Americans buy Chinese products because they are cheap not because they last. The Chinese are far from advanced.
I buy Chinese because greedy unions caused outsourcing.
The US government subsidizes the oil industry through various means, including direct payments, tax breaks, and other incentives, with estimates ranging from $10 billion to $760 billion annually. While direct subsidies for oil and gas production may be around $20.5 billion per year, some estimates, like those from the International Monetary Fund, include broader societal costs like environmental damage and health impacts, reaching $757 billion in 2022. Its the oil Companies that are brain washing Americans. Why is a technology political. We should do it to save your neighbor from getting cancer and to help your Friends, preventing mass flooding. The oil companies have spent so much money on bashing EVS its working because the uneducated are believing it.
Did chatgpt tell you to think that? or was it CNN? wind power and lithium mining causes more cancer then breathing car exhaust.