In the US, a bill was introduced to cancel the tax credit on electric cars, which will slow down the development of electric cars, thus handing the lead in the production of electric cars to China.
The new bill would repeal the Inflation Reduction Act, which earmarked hundreds of billions of dollars in climate spending, much of which was earmarked for tax breaks on the purchase of electric vehicles. These credits were a continuation and expansion of the $7,500 tax credit for environmentally friendly cars, which was first introduced back in 2008.
But those credits were originally limited to 200,000 units per manufacturer, so the new deflation law improved access to those credits by lifting the cap and allowing subsidies to be paid upfront rather than after annual taxes are paid.
Since US President Joe Biden took the vector for “electrification”, more than 210 billion dollars have been invested in the production and logistics of electric cars, which will create 250,000 new jobs in the coming years.
Against this background, Republicans introduced a bill that would repeal much of the benefits of the Inflation Reduction Act.
The new law aims to eliminate the “clean” vehicle credit for new and used passenger and commercial electric vehicles.
The draft law was introduced by John Barrasso, a Republican senator from the state of Wyoming, in which the main industries are related to oil.
Supporters of the law argue that the credits are supposed to be gifts for the rich and allow Chinese electric cars to enter the United States.
According to analysts, Chinese electric cars in the US will only benefit if the new law is adopted, because most affordable electric cars produced in the States will increase in price by $7,500, while Chinese-made electric cars will not change in price in any way, that is, they will instantly become more competitive.