“Most middle-class Americans will be able to get this credit that was blocked due to credit limits,” said Joe Britton, executive director of the Zero Emission Transportation Association. Manufacturers of charging equipment, suppliers of battery materials, and other companies involved in the electric vehicle business. “That’s a big deal.”
Read more about Asian-American relations
- Countering China: In a bipartisan vote, the Senate passed a $280 billion bill aimed at building America’s manufacturing and technological edge to compete with China. Intervention in US government industrial policy.
- Taiwan: The Biden administration is increasingly worried that China will try to oppose the autonomous islands in the next year and a half, perhaps by trying to block the Taiwan Strait.
- Trade policy: The new trade deal announced by President Biden during his visit to Asia is based on two big ideas: containment of China and moving away from concerns about markets and tariffs.
For the first time, battery-powered used cars are eligible for tax breaks of up to $4,000. This is important because most people buy used cars rather than new. The average price of a new electric vehicle is over his $60,000, making it out of reach for many buyers, even considering the fuel and maintenance savings electric vehicles offer.
Individuals with an annual income of $150,000 or more, or couples with an annual income of $300,000 or more, are not eligible for the new electric vehicle incentives. The used car incentive income limit is $75,000 for individuals and $150,000 for couples. This credit does not apply to sedans priced at $55,000 or more, and vans, pickups, and sport utility vehicles listed at $80,000 or more.
Akshay Singh, partner at PwC, an accounting and consulting firm that specializes in the automotive industry, said: “That’s the bulk of the market.”
The bill is over 700 pages long and does not mention China at all. However, some provisions appear designed to undermine China’s control over the electric vehicle supply chain and make it difficult for emerging Chinese automakers to export vehicles to the United States.
The current tax credit cap of 200,000 vehicles provides a competitive advantage to new entrants like China’s BYD, which is expected to enter the US market with electric vehicles. They could benefit from the credit, which Tesla, a Texas-based company, could not.