The EV industry will soon boom even more as the new BBB act of the Biden Administration is just a few steps from being approved! Here’s how it can help.
The EV industry in the United States is currently growing as electric car makers make huge efforts to provide technologies that can lessen the rising carbon emission in various cities. On the other hand, U.S. President Joe Biden is also trying to make the majority of the vehicles in America to be zero-emission.
Right now, EV is considered to be one of the main techs that can solve the excess carbon dioxide gases on the planet. Tesla, General Motors, and other giant automakers make sure that their zero-emission car models offer better features compared to traditional vehicles.
However, they still come at a price since their EV models are not actually cheap. Since not everyone can afford it, many consumers tend to rely on hybrid or to retain their gas-based vehicles so that they can save money. This is what the new BBB (Build Back Better Act) is trying to solve.
BBB Act to Offer Huge Electric Car Tax Incentives
U.S. President Joe Biden’s new infrastructure bill, which costs $1 trillion, is now being considered as a new act that can further enhance the current administration’s EV agenda. The bipartisan Infrastructure Investment and Jobs Act provides $7.5 billion to jump-start Biden’s goal of having 500,000 electric vehicle charges nationwide by 2030.
One of the benefits that the new Build Back Better Act offers is the huge tax incentives for electric cars. The proposed EV incentive under Build Back Better includes a current $7,500 tax credit to purchase a plug-in electric vehicle as well as $500 if the vehicle’s battery is made in the U.S.
It also includes a controversial $4,500 tax credit if the EV is assembled domestically with union labor, which has drawn heavy criticism from non-Detroit automakers whose American workers aren’t organized. However, many electric car manufacturers criticized the new BBB act.
Toyota Motor has called the union-made incentive “blatantly biased” and wrong. Tesla CEO Elon Musk also has heavily criticized the incentive and Biden for his support of unions such as the United Auto Workers union that represents plant workers of the Detroit automakers. The tax credits supporting advanced technologies that generally benefit wealthier Americans have always been controversial but stipulating that a portion of the $12,500 goes to union-made EVs escalated the partisan tension. Biden has been unapologetic about his support of unions.
The American leader explained that the U.S. “got to focus on what made the nation great. I have no problem with Wall Street bankers and others. But they didn’t build America. The middle-class built America and unions built the middle class.”
Under the bill, individual taxpayers report adjusted gross incomes of $250,000 or $500,000 for joint filers to get the new electric automobile credit. On the other hand, it would also limit the electric car credit to vehicles priced at no more than $55,000 and trucks and SUVs up to $80,000.