“Most middle-class Americans who would have been blocked due to credit restrictions will be able to get this credit,” said Tesla, executive director of the Zero Emissions Transport Association, which includes members as well. Joe Briton said. Manufacturers of charging equipment, suppliers of battery materials, and other companies related to the electric vehicle business. “That’s a big deal.”
Read more about relations between Asia and the United States
- Countering China: In a bipartisan vote, the Senate passed a $ 280 billion bill aimed at building an American manufacturing and technology advantage to counter China. This is the most important intervention in US government industrial policy in decades.
- Taiwan: The Biden administration is increasingly concerned that China may try to oppose the autonomous islands over the next half-year, perhaps by trying to close the Taiwan Strait.
- Trade policy: The new trade agreement announced by President Biden during his trip to Asia is based on two major ideas: to contain China and to move away from the focus on markets and tariffs.
For the first time, battery-powered used cars are subject to tax cuts of up to $ 4,000. This is important because most people buy a used car rather than a new one. The average price of new electric vehicles has risen above $ 60,000, which is out of reach for many buyers, even taking into account the fuel and maintenance savings they offer.
Individuals who earn more than $ 150,000 a year, or couples who earn more than $ 300,000, are not eligible for new electric vehicle incentives. The income limit for used car incentives is $ 75,000 for individuals and $ 150,000 for couples. Credits do not apply to sedans selling for $ 55,000 or more, and vans, pickups and sport utility vehicles listed for $ 80,000 or more.
Akshay Singh, a partner at PwC, an accounting and consulting firm specializing in the automotive industry, said: “There is most of the market there.”
The bill, which is over 700 pages long, does not mention China. However, some regulations are designed to undermine the country’s control over the electric vehicle supply chain, while making it difficult for up-and-coming Chinese automakers to export vehicles to the United States. It seems that.
As it exists, the 200,000 tax credit cap provides a competitive advantage for new entrants in markets like BYD in China, which are expected to use electric vehicles to enter the U.S. market. To do. Texas-based company Tesla wasn’t, but they could have benefited from credit.
