Used EV tax credit, union-built rewards in House climate and society bill now moving to Senate
The infrastructure and social policy bills passed by the US House of Representatives this week cover a wide range of EV provisions, from investments in toll infrastructure to a rejuvenated EV tax credit. Now they head to the Senate.
The Better Rebuilding Act (HR 5376) replaces the current federal EV tax credit with a new law that removes the 200,000-unit limit for qualifying manufacturers. The base credit is $4,000 while vehicles with a 40 kWh battery pack or larger qualify for the same $7,500 as the current credit.
This credit also includes a $250,000 income limit ($500,000 for groupers) and a $80,000 price cap for trucks, SUVs, and pickups, and $55,000 for all other vehicles. Starting in 2027, only vehicles assembled in the US will be eligible for the credit.
2022 Chevrolet Bolt EUV and EV start production
Argumentative bonuses made by unions also completed the final version of the State tax credit, adding an additional $4,500 to vehicles assembled at domestic consortium factories. Had Substantial feedback against bonuses made by unions, especially from automakers whose factories are not part of the U.S. union.
Another surprise is that the used EV tax credit has grown to date. Recommended earlier this year, the final House version includes a $2,000 base credit and an additional $2,000 for electric vehicles used before January 1, 2027 with battery packs of no less than 40 kWh, for a total potential value of 4,000 dollars.
Used EV tax credit effective January 1, 2022 and expiring December 31, 2031 and has an income-based deduction of $200 for every $1,000 of gross income adjusted taxpayers in excess of $250,000 ($500,000 for joint filers).
Chevrolet Spark EV 2015
Meanwhile, the Employment and Infrastructure Investment Act (HR 3684) includes $7.5 billion for electric vehicle charging, $5 billion for zero-emission and low-carbon school buses, and a grant program to finance expansion of domestic battery production, among other provisions.
The next step for these EV-friendly policies is Senate approval. While the two houses of Congress originally produced different versionsextended EV tax credit, Home adjusted its version somewhat in sync with the Senate in some respects — like car pricing limits.
