Several members of Congress have co-sponsored a bill that suspends the strict requirements automakers must meet in order to make their electric vehicles eligible for the US$7,500 US tax credit reintroduced with the recent Inflation Reduction Act. Introduced by Congresswoman Terri Sewell, the so-called Affordable Electric Vehicles for America Act essentially seeks to defer all made-in-the-U.S. eligibility requirements for three years. According to Rep. Emanuel Cleaver (MO-05), one of the bill’s co-sponsors:
Our legislation takes important steps to make the historic electric vehicle tax credits enacted in the Cut Inflation Act immediately available to consumers, especially working-class and middle-class Americans who want to buy a electric vehicle but need the federal credit to do so. As oil companies insist on continuing to jack up sky-high prices for American families at the pump, these tax credits offer hard-working Americans immediate and significant financial assistance to help them buy a better-for-the-environment vehicle. and their wallet. This bill would be a major victory for consumers, autoworkers and businesses, and I will work with my colleagues to ensure that it is signed into law by President Biden.
The application deadline is intended to give all electric vehicle manufacturers an equal chance to revamp their manufacturing base to comply while their current models remain eligible for subsidies. The new Affordable Electric Vehicles for America Bill calls for deferring all Made-in-America and other subsidy requirements for three years:
(a) FINAL MEETING.—Subparagraph (G) of Section 30D(d)(1) of the Internal Revenue Code of 1986, as added by Section 13401(b) of Public Law 117- 169, is amended by inserting ”in the case of any motor vehicle sold after December 31, 2025,” before ”final assembly”.
With the current requirements, the Tesla Model 3 and Model Y won’t become eligible until after January 1, 2023, for example, while some manufacturers like Hyundai that sell wildly popular EVs won’t be eligible at all because their current units on market are not eligible. ‘t assembled in the USA.
Since the Cut Inflation Act took effect, automakers and battery makers have been trying to move production to the United States, announcing new factories and joint ventures that will be based in America at a breakneck pace. .
Tesla’s Korean battery suppliers, for example, have reportedly started cleaning their supply chain of Chinese components or raw materials that would make their cells ineligible for the new wave of electric vehicle subsidies that will run until 2032. Tesla itself has expressed interest in building its own lithium refinery. on the Gulf Coast to ensure a steady, grant-compliant supply of critical battery equipment.
All of these investments in a new manufacturing base or retooling of existing plants will take time, however, and that’s what the new Affordable Electric Vehicles for America bill will try to address by making all vehicles electricity in the United States immediately eligible for the government program. tax credits.
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Courted by technology since the industrial espionage of Apple computers and the days of pixelated Nintendos, Daniel went to open a gaming club when personal computers and consoles were still an expensive rarity. The fascination these days isn’t with specs and speed, but rather the lifestyle the computers in our pocket, home, and car have put us in, endless scrolling, and privacy risks. to the authentication of each moment and movement of our existence.