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    Biden’s Build Back Better Act EV Tax Credit Helps Sell More Cars Than New Chargers

    President Joe Biden will speak on Wednesday, November 17, 2021 during his visit to the General Motors Factory ZERO Electric Vehicle Assembly Factory in Detroit.

    Evan Vucci | AP

    Detroit – Now President Joe BidenThe $ 1 trillion infrastructure bill is a law, and Democrats are looking to his Build Back Better Act to take the government’s electric vehicle agenda further.

    The bipartisan Infrastructure Investment and Employment Act will provide $ 7.5 billion to dramatically launch Biden’s goal of charging 500,000 EVs nationwide by 2030. Passing the House of Representatives on FridayIncludes tax incentives of up to $ 12,500 per vehicle to stimulate consumer demand for electric vehicles.

    At an event celebrating the production of Biden and the GMC Hummer EV in Detroit, Senator Debista Banou (D-Mich.) Said, “The infrastructure bill signed by the President this week is an important step in our investment in the future. “. “Now we are focusing on the next step.”

    Event at General Motors Factory Zero was a parade primarily by Michigan Democrats promoting Buildback Better and using the next Hummer production as a soap box to promote union-made vehicles.

    “This infrastructure law is my Build Back Better plan to start producing and recycling new batteries, materials and parts, and boost the production of clean vehicles with new loans and new tax credits,” Biden said during the event. Said. “Create new buying incentives for consumers to buy clean American, union-made cars like the Electric Hummer.”

    The $ 1.75 trillion Build Back Better bill Now go to the Senate It may be revised in the coming weeks. Senate leader Chuck Schumer said he is aiming to have the Chamber of Commerce pass the bill before Christmas. If the bill changes, the House of Representatives will have to vote again.

    Controversial incentives

    The EV incentives proposed under Build Back Better include the current $ 7,500 tax credit for purchasing plug-in electric vehicles and $ 500 if the vehicle’s battery is manufactured in the United States. increase. It also includes a controversial $ 4,500 tax credit if the vehicle is assembled domestically. Union labor, where American workers are receiving intense criticism from unorganized non-Detroit automakers.

    Toyota Motor The incentives created by the union are called “blatantly biased” and “wrong.” Tesla CEO Elon Musk also strongly criticizes the incentives and Biden for supporting unions such as the United Auto Workers, which represent factory workers in Detroit car makers.

    Tax credits that support advanced technology that generally benefits wealthy Americans are always controversial, but stipulating that a portion of $ 12,500 will be sent to union EVs raises party tensions. It has increased. Biden has not apologized for his support for the union.

    “We need to focus on what made the country so great, no problem with Wall Street bankers and others,” Biden said Wednesday. “But they didn’t build America. The middle class built America, and the union built the middle class.”

    Individual taxpayers under the bill that co-filers report adjusted total income of $ 250,000 or $ 500,000 to obtain a new EV tax credit. EV credit is also limited to cars under $ 55,000 and trucks and SUVs up to $ 80,000.

    “More important bill”

    John Murphy, an analyst at BofA Global Research, described the infrastructure package as “moderately supporting” the automotive industry’s move towards EVs. He said a $ 12,500 tax credit for buying EVs is more important for increasing hiring.

    “As mentioned earlier, the Biden administration’s buildback better agenda is a more important bill to determine regulatory support for the US electrification revolution,” Murphy wrote in an investor note last week.

    US President Joe Biden makes a gesture on November 17, 2021 after driving a Hummer EV during a tour of General Motors’ “Factory Zero” electric vehicle assembly plant in Detroit, Michigan.

    Jonathan Ernst | Reuters

    Transport officials last week advertised Buildback Better as an important part of Biden’s plan, along with a new infrastructure package to help the president reach his EV sales goals.He wants Half of all new cars sold By 2030, it will be an electric vehicle that includes a plug-in hybrid electric vehicle that includes an EV battery and a traditional internal combustion engine.

    Goldman Sachs analyst Mark Delaney said such incentives for EVs “more convincing,” the total cost of buying a car by making automakers’ products more affordable to consumers. It will bring about widespread profits. “

    “Ambitious” goals

    Infrastructure packages, on the other hand, cover only part of the funding needed to build a truly nationwide charging network.

    $ 7.5 billion is only about 15% of the $ 50 billion consulting firm AlixPartners has predicted to reach Biden’s goal of a national network of 500,000 chargers by 2030.

    According to experts, it is a building that requires a large amount of investment in the public and private sectors. They characterize the infrastructure package as a positive step in the right direction.

    “Sure, not everything comes from government,” said Mark Wakefield, global co-leader of AlixPartners’ automotive and industrial practices. “It probably comes from utilities, car makers, charging companies, convenience stores, companies that have gas stations that have chargers … the fact that they have an investment is good.”

    Biden’s Build Back Better Act EV Tax Credit Helps Sell More Cars Than New Chargers

    Source link Biden’s Build Back Better Act EV Tax Credit Helps Sell More Cars Than New Chargers

    The post Biden’s Build Back Better Act EV Tax Credit Helps Sell More Cars Than New Chargers appeared first on Eminetra.

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