Biden Administration's Proposal to Boost Electric Vehicle Sales Calls for $100 Billion in New Consumer Rebates

Eva Fox by Eva Fox April 07, 2021

Biden Administration's Proposal to Boost Electric Vehicle Sales Calls for $100 Billion in New Consumer Rebates

Photo: The Verge

The Biden administration is committed to continuing its drive to decarbonize the US economy by 2050 and restore the country's leadership in the fight against global warming. Part of the plan is to stimulate the electric vehicle market. The new plan calls for $100 billion in new consumer rebates and $15 billion to build 500,000 new electric vehicle charging stations, according to an internal email.

President Joe Biden's ambitious infrastructure plan includes $174 billion to stimulate the electric vehicle market and billions of dollars in renewable energy. The main goal of the plan is to reduce US dependence on fossil fuels and to combat climate change.

The Biden administration's proposal also calls for $100 billion in new consumer rebates for purchasing EVs and $15 billion for the construction of 500,000 new EV charging stations, according to a Transportation Department email sent to Congressional staff and seen by Reuters.



New consumer rebates on electric vehicles will potentially be a big boost for American automakers, especially General Motors and Tesla. The US federal government has a tax program that provides incentivizes on the purchase of EVs. Each buyer can get a tax credit of $7,500. However, there are some restrictions: if a manufacturer has sold 200,000 electric vehicles in the United States, a phase-out period begins, which gradually denies access to buyers of the car manufacturer's EVs to this federal tax credit. Tesla hit a sales threshold of 200,000 EVs in the US in 2018, so buyers of the company's cars have been recognizing these restrictions for some time now. The new incentives should significantly increase the already strong demand for Tesla vehicles in the US.

© 2021, Eva Fox. All rights reserved.

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Article edited by @SmokeyShorts, you can follow him on Twitter





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