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Shaking a big political shake in Washington, as the House’s Republicans progress with a proposal that could significantly change the landscape of the electric vehicle in the United States. The plan was presented on Monday and is part of a more comprehensive tax reform package that includes the scrap of the control credits for electric vehicles (electric vehicles) and rolling back the most important fuel efficiency standards to promote cleaner transport.
At the center of the proposal is a step to eliminate the tax credit in the amount of 7,500 US dollars for new EV buyers and the loans of 4,000 US dollars for used EVs from December 31. There is a close exception for car manufacturers who have not yet sold 200,000 electric vehicles. These companies would keep access to the new vehicle credit for another year and offer a short lifeline for newer or smaller EV manufacturers who are still increasing production.
Genevieve Cullen, President of the Electric Drive Transportation Association, has not criticized the criticism of the suggestions. Cullen called it “catastrophic short-sighted” and warned that the resignation of the federal government would hand over the international competitor-in-minds in particular China-the property and to provide a slap for the domestic innovations, production and creation of jobs. “It is an enormous market advantage for China at the expense of America,” she said.
This year alone, the US Ministry of Finance distributed more than $ 2 billion in EV discounts and made them an important part of the Biden Administration Clean Energy Strategy. The house proposal does not fully draw the plug for all EV-related incentives. It holds a critical tax credit for battery production, which is of crucial importance for car manufacturers and battery providers that want to expand the US operating processes. However, there is a catch. From 2027, vehicles with components of certain Chinese companies or even the use of technology with a Chinese license could be excluded to this credit. This provision could make American car manufacturers such as Ford and Tesla who have license agreements with Chinese battery companies.
In addition to tax credits, the Republican plan is intended to reduce a loan program that supports the development and production of advanced technology vehicles. The program helped finance projects with large -scale battery systems across the country, with billions of joint ventures already involved with Ford, Stellantis, Samsung SDI and Rivian. These loans have been completed by President Biden in the last months of the term of office and, as the cornerstone of the government’s efforts, to end America’s EV transition.
If the proposal is adopted, the proposal would also be the CAPE standards (corporate average fuel consumption) and the greenhouse gas rules that should come into force in 2027 and beyond. This part of the legislation is expected to be checked by the energy and trade committee in the coming weeks.
This urge of the Republicans from the Republicans reflects broader political tensions regarding the policy of clean energy and federal expenditure. While supporters of the reform argue that it is time to leave the EV market without government intervention itself, critics fear that the rollback may stop the progress that the United States has made in the electrification of the transport sector. Since China and the European Union accelerate their own EV investments, the decisions made in the coming months could have permanent effects on the US car industry and its competitiveness on the global stage.
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