Tesla’s demand for lower import duties may have divided the auto industry with divergent views in India, the electric vehicle maker may soon benefit from incentives in its domestic market. U.S. lawmakers have proposed new legislation that will offer nice EV credits for every U.S.-made electric car sold in the country.
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The proposed law was shared by U.S. Democratic lawmakers on Friday. He said electric vehicles, which include significantly higher subsidies for zero-emission models made by unions and assembled in the United States, will receive an expanded tax credit.
The bill will provide a tax credit of up to $ 12,500 per electric vehicle, roughly converted to just over $ 12,500. ??9 lakh. This is a big increase from the $ 7,500 incentive usually offered for most other electric cars. The bill will also not eliminate tax credits even after manufacturers of electric vehicles hit the 200,000 sales unit mark. This will be extremely beneficial for Tesla, the world’s largest manufacturer of electric vehicles, as well as for General Motors.
The offered EV credits, which will last for 10 years, will also help customers buy electric cars while reducing much of the actual cost, thanks to the generous discount. Under the proposal, individual taxpayers whose gross income does not exceed $ 400,000 will get the new electric vehicle tax credit. This would limit the EV credit to cars priced as low as $ 55,000, while electric vans could cost as much as $ 74,000.
The hike, along with other revisions, could lower the price of some electric cars, like GM’s Chevrolet Bolt, by up to a third. While this will not only make electric vehicles more affordable and competitive in a market still dominated by ICE vehicles, it will also help achieve US President Joe Biden’s vision of at least one in two electric cars on US roads here. the end of this decade.
“We want to encourage that. It puts American manufacturers first, this is where we want them, and it cuts emissions faster than any other policy we could put in place,” said Representative Dan Kildee, a Michigan Democrat, quoted by Reuters news agency. âA decade from now, we want to see American workers earning good wages by building American electric vehicles,â he added.
The proposal could give Detroit’s Big Three automakers – Ford, General Motors and Fiat Chrysler – a big competitive advantage. However, the proposed law is unlikely to win favor with foreign OEMs in the United States, such as Honda and Toyota. Honda released a statement last month saying its workers “deserve fair treatment from Congress and should not be penalized for their choice of workplace.”
The House Ways and Means Committee will vote next week on the proposal, which is part of a general tax measure in a $ 3.5 trillion spending bill. The bill is likely to meet resistance in the Senate, as Republicans have harshly criticized much of the spending bill.