#Giveaway  on last slide

No EVs (Not Even Tesla) Qualifying for New Electric Tax Credit

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Congress may approve tax credits for electric cars larger than the current limit, but this effectively disqualifies all E.V.s currently on the market.

This is because most E.V.s use lithium-ion batteries, primarily made in China.

This weekend, the Senate passed the Inflation Reduction Act of 2020 in a party-line vote.

By 2024, batteries must have at least 40% of their materials from North America or another U.S. trading partner.

There are 72 E.V. models currently available to purchase in the U.S., and 70% of those models would not be eligible for the tax credit if the bill passes.

To be eligible for the $7,500 tax break, battery components must be made 100 percent in North America by 2029.

Bozzella, the Alliance for Automotive Innovation's CEO, stated that everyone in the industry agreed there is a need for serious investment in the domestic supply chain.

However, this should not be at the cost of customer incentives.