How will the Inflation Reduction Act impact the electric vehicle industry?
The bill presents complications for obtaining the electric vehicle tax credit, according to Jamie Butters of Automotive News.
This week, the U.S. Senate passed the Inflation Reduction Act. It contains the largest investment in green energy the Senate has ever passed, including incentives for electric vehicles. President Biden is expected to sign the bill into law after it passes in the House of Representatives.
Still, American car companies may not be prepared to benefit fully from the electric vehicle incentives in the bill. Automotive News notes that six of the ten most popular electric vehicles today will not qualify because they are too expensive or aren’t made in North America, among other issues.
“If you meet all the rules, you get a really significant benefit,” says Jamie Butters. “But you’re, by mid-decade, you’re going to have to jump through a lot of hoops.” — Jamie Butters, Automotive News
Listen: Why the Inflation Reduction Act introduces a new set of complications for electric vehicle manufacturers and buyers.
Jamie Butters is an executive editor of Automotive News and co-host of the Automotive News Daily Drive podcast. He says the bill contains several rules that disqualify many of today’s most popular electric vehicles due to compromises in the Senate.
“They put a lot of rules on it. If you meet all the rules, you get a really significant benefit,” says Butters. “But you’re, by mid-decade, you’re going to have to jump through a lot of hoops.”
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