U.S. Democrats propose expansion of tax credits for electric vehicles
U.S. Democrats have proposed an expansion of tax credits for electric vehicles. It wants to include a new incentive for the purchase of electric vehicles in its $3.5 trillion social spending bill. The incentive was introduced as part of the $3.5 trillion reconciliation spending package. By 2030, President Biden aims to have electric vehicles make up at least half of the country’s car sales.
U.S. Democrats proposal
According to the proposal, electric vehicles will get incentives up to $12,500.The legislation will introduce $7,500 discounts on electric vehicles at the point of sale for five years. The vehicles which will be assembled at union-participating plants will get an additional $4,500. If the cars are equipped with a US-made battery will receive an additional $500 incentive. After 5 years the $7,500 base credit will only apply to US-made electric vehicles, but the other two incentives will remain the same. Individuals with an adjusted gross income of up to $400,000, heads of households making up to $600,000, and joint filers making up to $800,000.
Rep. Dan Kildee, D-Flint Township who serves on the Ways and Means Committee said that “We want to make sure that people who make good wages, support their families and contribute those wages and benefits in their community are the primary beneficiaries of this.”
“We think that gives everybody ample time to understand that when it comes to the American tax dollar, we’re not going to do this in a way that is so disruptive to the market,” Kildee said.
The Democratic proposals would invest USD 150 billion in grants to encourage power companies to provide clean electricity from renewable sources such as wind and solar. The House Energy and Commerce Committee, advanced proposals promoting clean electricity, investments in electric vehicles and other climate provisions. The energy panel’s USD 456 billion slices are the most consequential for dealing with climate change and greenhouse gas emissions, along with the tax breaks debated by the Ways and Means Committee.
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