President Biden’s proposed infrastructure legislation rings in for a staggering $ 2.25 trillion, and is a particularly large sum for money included in the price tag. No, there is no tax credit, but the exemption is removed at the point of sale. This would be a massive change from the present-day structure.
We now have an idea of how ready the Biden administration is to throw on these EV rebates, and that is a very significant sum: $ 100 billion. Reuters sent the information department to Congress on Wednesday in an email with more information about the plan and included the specific dollar figure for the EV rebate. The DoT did not immediately return Roadshow’s request for comment.
It is very easy to get lost in numbers, but keep it in perspective. The Obama administration originally allocated only $ 2.4 billion in funding for the federal EV tax credit program, which awards a buyer up to $ 7,500 for filing taxes. If $ 2.4 billion in tax credits with $ 2.4 billion can be discounted by $ 7,500, imagine what $ 100 billion can doAt the point of sale. We can talk about incredibly generous discounts when buyers go to purchase EVs, and I think I can already understand General Motors and Tesla dripping saliva on this news. Both automakers no longer qualify for EV tax credits from the Fed after crossing the credit limits in 2020 and 2019 respectively, so if you buy GM or Tesla EVs, the Fed is not helping these days.
We don’t have any other details on how the EV waiver program might work, but they will definitely start dropping out as Congress debates legislation in the coming weeks.