Connect with us


New Bill Would Allow More EVs to Qualify for Full Tax Credit



2023 Hyundai Ioniq 5

Photo: Hyundai

When the Inflation Reduction Act was signed into law earlier this year, it included a significant change to the federal tax credit for new electric vehicles. While it incentivized North American vehicle production, it also made more than two-thirds of all EVs currently sold here ineligible for the for the full $7,500 credit. A new bill that was recently introduced in the House of Representatives could change that.

Electrek reports that representatives Terri Sewell, Emanuel Cleaver, Eric Swalwell and Jimmy Gomez introduced a bill known as the Affordable Electric Vehicles for America Act. And while it wouldn’t completely throw out the IRA’s new tax credit requirements, it would change them by adding a phase-in period that would give automakers more time to meet the manufacturing and battery-sourcing requirements. Additionally, Senator Raphael Warnock introduced a companion bill in the Senate.

If the AEVAA passes, automakers will still be required to eventually build EVs in North America and source their batteries domestically or from countries that have free-trade agreements with the U.S. But it would give them more time to do so, allowing more Americans to take advantage of the tax credit next year.

Rep. Cleaver explained the logic behind the bill in a statement:

Our legislation takes important steps to make the historic electric vehicle tax credits passed in the Inflation Reduction Act immediately accessible to consumers, particularly working- and middle-class Americans who would like to purchase an electric vehicle but need the federal credit to do so. As oil companies insist on continuing their exorbitant price-gouging of American families at the pump, these tax credits offer hardworking Americans immediate and significant financial assistance to help them purchase a vehicle that is better both for the environment and their wallets. This bill would be a major win for consumers, auto-workers, and businesses alike, and I will work with my colleagues to ensure it is signed into law by President Biden.

As we previously reported, Hyundai in particular was negatively affected by the IRA’s tax credit requirements. It has already invested heavily in U.S. EV production, but construction on those facilities won’t be complete until after the new regulations go into effect. And even General Motors will need three years to qualify for the full tax credit. Adding a longer phase-in period sounds like a good way to continue incentivizing EV purchases until automakers have adequate time to meet the new requirements.

Continue Reading

Recent News

Adelaide Adelaide
Digital Marketing1 day ago

Understanding the Importance of SEO in Adelaide

In the digital marketplace, Adelaide businesses are in a continuous contest to gain the attention of their target audiences. With...

Traveling Nurses Pay Traveling Nurses Pay
Health1 day ago

Breaking Down the Numbers: Understanding the Average Traveling Nurses Pay

The open road, adventure, and the chance to heal – travel nursing promises an undeniable allure. But amidst the excitement,...

Oily Skin Oily Skin
Fashion3 days ago

Dealing with Oily Skin in Summer: Tips and Tricks

As the temperature rises, those with oily skin often face an additional challenge—maintaining a clear and balanced complexion. Excess oil...

Mountain Wedding Mountain Wedding
Wedding5 days ago

Mountain Wedding Ideas for 2024

A mountain wedding is a stunning choice for couples who cherish nature and desire a distinctive wedding experience. Whether you...

Salon Salon
Health5 days ago

3 Of The Best Ways To Keep Your Salon Clean

It is of the utmost importance to ensure that a salon is kept scrupulously clean, not just for the sake...

Blood Tests Blood Tests
Health5 days ago

3 Reasons You Should Get Blood Tests Every Year

Regular blood tests are essential for preserving general health and identifying potential problems early on. Medical professionals can evaluate your...

Crafts Project Crafts Project
Lifestyle5 days ago

How to Make Your Next Crafts Project Pop

Crafting is a creative outlet that allows individuals to express themselves through various mediums such as paper crafts, sewing, painting,...

Traveling With Children Traveling With Children
Travel1 week ago

5 Things You Need When Traveling With Children

Traveling with children can be both thrilling and challenging, whether you’re embarking on a road trip across the country, navigating...

Prepare For a Pregnancy Prepare For a Pregnancy
Health1 week ago

How to Prepare For a Pregnancy

Pregnancy preparation comprises physical, emotional, and behavioral factors. Preparing well helps improve pregnancy and motherhood. This thorough approach guarantees that...

AI in Healthcare AI in Healthcare
Health1 week ago

What AI in Healthcare Means For You

Healthcare is being transformed by AI, which offers novel answers to difficult health issues. AI has great potential to improve...