The $ 12,500 EV tax credit proposal may have a downside

0


The adoption of electric vehicles has been one of the main topics Joe Biden has run for as a presidential candidate. One of the main ways of doing this for consumers is to make electric cars more affordable through incentives. President Biden is looking to do just that with his Build Back Better legislation. While the legislation has yet to go through the Senate, it suggests that American buyers could be eligible for a federal tax credit of up to $ 12,500 on the purchase of an electric car. Unfortunately, as Inside electric vehicles points out, no car on the market qualifies for the full amount of the tax credit.

Due to the battery issues Chevrolet is having with supplier LG and the current recall of every Bolt EV and Bolt EUV ever made, GM is not currently producing either of the two electric cars. With that vehicle out of the equation, not a single electric vehicle on sale complies with Build Back Better legislation to be eligible for the total amount of $ 12,500.

As a reminder of the legislation, the proposal offers consumers a credit of $ 4,000 for the purchase of an electric vehicle, an additional $ 3,500 for electrified vehicles with a battery of at least 40 kWh of capacity, 4 An additional $ 500 for electric vehicles built by a unionized workforce. , and an additional $ 500 for electric vehicles with American-made batteries. To be eligible for the full amount, buyers must purchase an electric sedan with an MSRP of up to $ 55,000 or an SUV, pickup or van with an MSRP of up to $ 80,000.

The legislation distributes a lot of money, but only the Bolt EV and Bolt EUV are the only two quality vehicles for the total amount. The Ford Mustang Mach-E is produced in Mexico, Tesla’s electric cars are assembled in the United States by non-union workers, Rivian has non-union workers, and the GMC Hummer EV and pickup are way overpriced. If there is good news, it’s that the next Cadillac Lyriq SUV should be eligible for the full amount, but this vehicle won’t go on sale until the first half of 2022 as a 2023 model. the upcoming Ford F-150 Lightning will also be eligible for the full federal tax credit.

Many automakers, such as Toyota and Tesla, have expressed their opposition to the legislation. They are unhappy with the unionized part of the equation. While several brands build electrified vehicles in the United States, GM is the only major automaker to have a union for its employees. In the United States, unions are controversial. Unions are supposed to protect workers, help them get higher wages and better working conditions, but that is not always the case, as evidenced by the embezzlement scandal in which United Auto Workers has been implicated. . Thus, auto workers and senior managers have strong feelings towards unions.

Some see President Biden’s legislation as an attack on non-union automakers. Others see it as a good thing, as it forces automakers to allow employees to unionize if they want to attract buyers. There is no right or wrong answer, it’s just a way to get consumers to buy an electric vehicle.

There is still a long way to go before the bill becomes a bill. It is currently in the Senate, where opposition to the union side of the equation is sure to provoke conflict.

Best deals on electric vehicles, plug-in hybrids and hybrids

Source: Inside electric vehicles


Share.

Comments are closed.