-October 28, 2021 at 10:01 am Pacific Time
The reform of the Federal Electric Vehicle Incentive Program, including an increase of $12,500 in electric vehicle incentives, survived President Biden's updated "Rebuild Better" proposal.
Since President Joe Biden took over the White House and the Democrats won a majority in the Senate and House of Representatives, they have made it clear that they plan to reform the federal electric vehicle incentive program.
The current program has some important flaws. The main point is that it limits the tax credit of $7,500 per manufacturer to 200,000 electric vehicles.
This puts early supporters of electric vehicles such as Tesla and General Motors at a disadvantage.
The second biggest problem is that the award takes the form of a tax credit of $7,500, which requires you to bear the same federal tax burden and only applies to your next tax payment.
In the past year, several proposals have been made to reform incentives for electric vehicles.
The latest one has been incorporated into Biden's huge "Rebuild Better Act", which has been debated in the US legislature for months.
Today, the White House released an updated version of the proposal, stating that "President Biden is confident that he can pass both houses of Congress."
In this framework, the White House confirmed that the updated $12,500 electric vehicle incentives are still valid:
"Providing substantial rebates for consumers and ensuring that middle-class households save money when switching to clean energy and electrification. The consumer rebates and credit included in the Build Back Better framework will save the average American household hundreds of dollars in energy costs each year. These measures include strengthening and expanding the existing household energy and efficiency tax credits, and creating a new electrification-focused tax rebate program. The framework will reduce the cost of installing rooftop solar energy for households by approximately 30% and shorten the payback period Approximately 5 years; the framework’s electric vehicle tax credit will reduce the cost of an electric vehicle manufactured by a middle-class family in the U.S. by $12,500. In addition, the framework will help rural communities through targeted grants and loans from the Department of Agriculture Take advantage of clean energy opportunities."
The framework does not include the details of the program.
We listed all the major changes to the plan when we first announced the plan earlier this year:
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