Axios: "The Limits of the Electric Car Credits"
RFF Fellow Beia Spiller's blog post on electric vehicle tax credits outlined in the Inflation Reduction Act is featured in this newsletter.
A new analysis starkly lays out the limits of U.S. electric vehicle tax incentives in the Democrats' soon-to-be-enacted climate bill, Ben writes...
What's new: Beia Spiller of Resources for the Future (RFF), a nonpartisan think tank, translated Congressional Budget Office estimates of the incentives into projected real-world sales.
Even by 2030, vehicles purchased using the credits would be just 3% of total global EV sales last year.
Threat level: "[G]iven the country’s goals for achieving 50 percent zero emission vehicles by 2030, the tax credit will not go far enough," writes Spiller, who leads RFF's transportation program.
- "Until auto manufacturers in the private sector make significant changes to their manufacturing processes and resulting vehicle price points, you — and most other car buyers in the market for EVs — may need to forego the tax credit if you want to go electric."
Common Resources — Aug 11, 2022
Inflation Reduction Act: Electric Vehicle Subsidies for Passenger Vehicles
The Inflation Reduction Act works to expand the tax credit for electric passenger vehicle purchases. However, some of its key clauses are likely to make it harder to take advantage of the credit for at least a few years.