EV credits get slashed by Biden

Joe Biden the US President has signed legislation last Tuesday that will get rid of electric vehicle tax credits for most electric vehicles. The white house said the following week that Biden will be approving a $430 billion climate, health and tax bill that will be restructuring the existing $7,500 EV tax credit and instead replacing it with a $4,000 rebate for used EVs. The bill also includes tens of billions of dollars in new loan, tax credits, and grants programs for automakers to build cleaner vehicles.

EV customers are now scrambling to complete contracts that give them the $7,500 credit before the change. The alliance of Automotive Innovation has said that this change would make 70 % of the 72 electric, plug-in hybrid and fuel-cell EVs ineligible upon this new law. Similarly, when the new critical mineral sourcing rules take effect next year this will cause no EVs to qualify for this rebate. Large automotive companies like Audi, Kia and Porsche said that are afraid that their customers will lose their federal tax credits. For example, Audi said that its Audi plug-in hybrid will be the only EV that they make which is able to receive tax credits. This bill will also make any EVs that are assembled outside of North America not allegeable for tax credits. Though just recently Tesla have said that they will be able to regain their tax credits in 2023.