Could the climate bill help you nab an EV?

The climate bill has good intentions, but it might not be as helpful as it seems.

Electric vehicles can save drivers money in the long run, but adoption is hindered by high costs (~$66k on average in the US) and short supply.

Could the climate bill help you nab an EV?

A new climate bill, passed by the Senate and expected to clear the House this week, could helpor make things harder, Axios reports.

How it works

The bill includes $370B+ in climate and energy-focused spending and tax incentives. Some relevant provisions for EV buyers and producers include:

  • $7.5k in tax rebates when buying US-made EVs (up to $4k for used EVs)
  • $2B in grants to revamp auto manufacturing facilities for clean vehicle production
  • $20B in loans to build manufacturing facilities for clean tech

But getting that tax rebate…

… could be tough. To meet eligibility, a vehicle’s battery must have:

  • ~40% of its components made in North America or by a US trade partner by 2024
  • 100% of its components made in North America by 2029

This is a problem, because the EV battery supply chain in the US is underdeveloped. Currently, only ~30% of EVs in the US qualify for the tax credit, and none meet the qualifications for 2029.

Some experts believe the bill would be more climate-friendly if the tax credits applied to all EVs.

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