The US House of Representatives intends to restore incentives for buyers of electric cars, which could significantly boost sales of manufacturers such as Tesla, GM, Ford and others. The new bill requires congressional approval.
Democrats in the US House of Representatives have introduced a new bill, the Renewable Energy and Efficiency Act (the so-called Green Act), which includes federal incentives and subsidies as incentives for electric car sales in the country.
If the bill passes in Congress, American consumers will have a significant argument for purchasing an electric car. Given the weight of Democratic votes in the Senate, the bill has a good chance of passing.
This will affect the sales of Tesla (TSLA), GM (GM), Ford (F), Workhorse Group (WKHS) and other electric vehicle manufacturers.
Accelerating transport electrification and financial support programmes for green energy companies were among the campaign promises made by Democrats and the new US president. Joe Biden promised to replace the entire state fleet with electric vehicles and build 550,000 electric vehicle charging stations across the country.
The new bill, unlike previous programs, includes a maximum rebate of $7,000 rather than $7500 for an electric car buyer. The amount of the rebate depends on battery capacity; buyers of hybrid cars are eligible for much smaller rebates. Previous law provided subsidies only for the first 200,000 electric cars sold by a company, above this figure buyers already lost the right to pay the federal rebate.
The new 2021 US Green Act stipulates a higher limit of 600,000 electric vehicles sold by a manufacturer, after exceeding which the rebate is not abolished, but previously reduced by 50% during the first quarter.
The new law also provides a tax credit of up to $2,500 on the purchase of a used electric vehicle that must be at least two years old and the sale price cannot exceed $25,000. Also, the bill would create tax incentives for companies and municipalities that purchase electric heavy-duty vehicles, including zero-emission buses.
In this way, the electric vehicle industry could get a significant boost and further change the entire automotive industry.