Both Republicans and Democrats are pushing updated EV tax credit bill.
As Reuters reports, a conglomeration of "bipartisan" U.S. lawmakers want to extend the current federal EV tax credit to 400,000 cars produced. Currently, the credit begins to "sunset" at 200k sold. This current situation works to hinder automakers like Tesla and GM that have worked hard to produce and promote EV adoption. Meanwhile, it gives those that have been slow to adopt a huge and arguably unfair edge.
News Related to the U.S. Federal EV Tax Incentive:
While Tesla and GM are forced to suffer from a sales drop due to the tax credit diminishing, other automakers can price their vehicles higher. This is because those "new" EV makers like Audi, Hyundai, Kia, and others aren't even close to hitting the 200k threshold for U.S.-based EV sales.
According to the report:
The bill is sponsored by Democratic Senators Debbie Stabenow and Gary Peters, Republican Senators Lamar Alexander and Susan Collins and Democratic Representative Dan Kildee, the sponsors told Reuters ahead of its official introduction.
The bill could lift electric vehicle sales in a boost for automakers that have committed tens of billions of dollars to meet rising global emissions requirements.
The existing $7,500 EV tax credit, which allows tax payers to deduct part of the cost of buying an electric car, phases out over 15 months once an automaker hits 200,000 cumulative EV sales. GM saw its tax credit cut to $3,750 on April 1. Tesla’s tax credit fell to $3,750 on Jan. 1 and will end entirely at year’s end.
This new bill -- the “Driving America Forward Act" -- would work to add an additional 400k EVs on top of each current automaker's 200k on the previous program. However, it would then lessen the phase-out period to nine months instead of 12-15. Still, the bill would allow hardcore players like Tesla, GM, and even Nissan to take advantage during a time that -- in the current situation -- other automakers are now just catching up.
U.S. Senator Debbie Stabenow shares:
We have a cap that’s got to go up. I want to get this done as soon as possible.
Sadly, many other senators disagree and are lobbying against the proposal. For example, Republican Senator John Barrasso, who chairs the Environment and Public Works Committee, is fighting it. One would think that a committee with basis toward the environment would be on board. However, we've learned that in the current Trump administration, those in environmental capacities and even EPA leaders continue to support coal and oil, along with denouncing global warming and electric vehicles.
It's becoming increasingly clear that they don't have any issue with the significant and increasing subsidies on oil, but will poke fun at (and belittle) such minimal support for EVs.
If the U.S. government wasn't continuing to subsidize oil, gas prices could rise to some $6-15 per gallon. Why then is it not okay to similarly discount EVs, which are proven to be much more environmentally friendly?
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