EVs set to make a big leap under Biden administration
New incentive could bring GM and Tesla back into equation
That President Biden is planning to boost incentives to put new car buyers into electrics is no surprise. But what might be is the amount. The US federal EV incentive could climb to $10,000 and restart the countdown clock for automakers whose vehicles don’t qualify for the current tax credit any more.
The current US federal credit is $7,500 for buyers of electric vehicles, but once an automaker hits 200,000 total EV sales in the country, the incentive winds down for that automaker. General Motors and Tesla EVs, for example, haven’t qualified for the incentive for more than a year and their credits began winding down in 2018. A bill proposed in February called to lower the incentive to $7,000 and apply that to vehicles 200,001 to 600,000 for each manufacturer.
Now, Yahoo Finance reports, tech analyst Dan Ives says that sources in Washington are saying that the $7,500 incentive could become a $10,000 incentive. That’s part of the Biden administration’s plans to spend US $200B over eight years to support the electric vehicle industry. That’s expected to include the installation of more than 500,000 charging points as well as work to support the production of vehicles and batteries.
The move could be a big boost to EVs, especially in the short term, which might be just the ticket for buyers and automakers alike. It would also help bring price parity back for the two automakers who sell the most EVs, who are currently at a disadvantage when it comes to the cost of an EV to the customer.