The $433 billion in new spending from the Inflation Reduction Act is supposed to remake our planet. There are billions for climate change proposals, including putting the U.S. on track to achieve 40% fewer carbon emissions by 2030.
That was always a ridiculous, pie-in-the-sky goal. Economic activity would have to be severely curtailed for that to happen.
Part of the 40% estimate is based on the idea that 50% of new vehicles on the road by 2030 will be electric. Always an unrealistic number, the estimate is now complicated by the fact that 70% of new EV models won’t qualify for a generous subsidy under the Senate reconciliation bill.
Buyers of a majority of electric-vehicle models would not qualify for a $7,500 tax credit under a Democratic proposal in the U.S. Senate.
That’s according to a group of major automakers.
Automakers have been privately concerned about the proposal’s requirements for vehicles’ batteries and critical-mineral contents to be sourced from the United States.
The July 27 proposal by Senators Chuck Schumer and Joe Manchin would make 70% of U.S. electric, plug-in hybrid and fuel-cell EVs ineligible upon passage, according to John Bozzella, heads of the Alliance for Automotive Innovation.
Didn’t someone tell the geniuses who wrote the bill that most new vehicles weren’t eligible?
The fact that there are nowhere near enough electric car charging stations might also have been good information for the authors of this bill.
The attitude of Biden and the Democrats appears to be that everything will eventually sort itself out. Eventually, they’ll have enough charging stations, more powerful electric cars that can travel more than a few hours, and more mechanics that can maintain the EVs.
Car makers want significant changes to the proposal, which is part of a larger drug pricing, energy and tax bill.
Without the tax credit, the vehicles become more costly for American consumers.
President Biden has a target of having half of all new vehicles sold be electric or plug-in hybrid models by 2030.
An analysis by the Congressional Budget Office on Wednesday suggested just 11,000 new EVs would use the credit in 2023.
Maybe we can all just get out and walk. The health benefits would be excellent.