A new bill has been introduced to the US Senate that would boost the electric vehicle tax credit.
Electric cars are expensive. That’s a problem as most people are having a tough enough time affording a regular car, let alone one that runs on batteries. So far, electric vehicles are only affordable to affluent city dwellers who live close to electric infrastructure.
But if we want to avoid the global climate apocalypse, we’ll need regular people to start buying electric cars (we’ll also need a lot of other things to happen, but we’ll focus on the car thing for now).
That’s why a group of Democratic and Republican senators has agreed on a new bill introduced Wednesday that extends the electric vehicle tax credit to 400,000 vehicles per manufacturer.
The current EV tax credit only lasted for the first 200,000 vehicles made per manufacturer and gave them a $7,500 tax write-off. Tesla reached that limit many moons ago, along with General Motors shortly thereafter.
After reaching that 200,000 limit, the tax credit phases out over 15 months. GM’s tax credit was reduced to $3,750 on April 1st, while Tesla’s did it at the beginning of the year.
The bill is called the "Driving America Forward Act,” and will extend the tax credit to an additional 400,000 cars on top of the 200,000 already credited. The tax credit would be reduced to $7,000 for those additional 400,000 vehicles, and the phase-out period would be reduced to 9 months after reaching that limit.
There’s also an extension of the hydrogen fuel cell which keeps going until 2028, but nobody cares about that since nobody has a hydrogen fuel cell car.
Naturally, all the major carmakers are on board with this bill, including GM, Tesla, Toyota, Ford, Fiat Chrysler Automobiles, Honda, BMW, Nissan, Volkswagen AG. However, the current government is likely to find this a tough cell as the total price tag on the bill is $11.4 billion.
But hey, you gotta break a few budgets to clean the air, as they say.