Skip to content

Shady! Want That EV Tax Credit? Better Hurry!

It looks as if eventually we are all going to be bullied into considering an electric vehicle. The current Democratic party has all but assured that.

Personally, having worked for three decades in the auto industry, I think it’s a terrible idea. The range issues, the disposal issues with the batteries, and just the sheer amount of technology present in these vehicles is just a recipe for disaster.

Factor in that most conventional repair shops will not be adequately equipped to service and repair EV’s, and the entire venture looks costly and inconvenient.

Thank goodness our federal government is giving us all big, fat tax credits for purchasing EV’s. Just kidding, the government is about to make those difficult, if not impossible to get!

After the “Inflation PRODUCTION Act” gets signed into law, the stipulations for getting the tax credits change. Check out the details from The Verge:

The auto industry is scrambling to adjust to the new rules requiring that EVs must be assembled in North America, using parts and supplies sourced domestically or from official trading partners, in order for customers to qualify for the $7,500 tax credit. Most EVs have batteries that are sourced from China, meaning the new rules are written in such a way as to effectively disqualify the vast majority of EVs on the road today.

Allow me to break this down. The government is dangling the carrot of huge tax incentives to purchase an EV as part of the selling point of the fat new inflation bill. However, once the bill goes into effect, the stipulations change as to what vehicles are eligible. That’s shady!

The vehicles are going to be required to be assembled in North America which on the surface might seem like a good thing, but the automakers have no incentive to shift production of EV’s to American plants, and most American plants are years away from being able to accommodate the production of electric vehicles.

Further, by requiring parts and supplies to be sourced domestically, fewer EV’s are going to qualify for the tax credits. Why? Because the auto industry is a global market. Parts come from all over the world. It may not be feasible for an automaker to purchase ALL of their parts from domestic suppliers and government approved sources.

Our federal government KNOWS most automakers can’t or won’t comply with these stipulations, therefore making the vehicles in question ineligible for the tax rebates, at which point the government can just throw their hands up in the air and blame the automakers. See where I am going with this?

According to the Alliance for Automotive Innovation, the auto industry’s main lobbying group, there are currently 72 EV models available for purchase in the United States, including battery, plug-in hybrid, and fuel cell electric vehicles. Of those models, 70 percent are ineligible for the tax credit when the bill passes. And by 2029, when the additional sourcing requirements go into effect, none would qualify for the full credit.

Considering almost all of the batteries are made in China, essentially almost all EV’s produced will be ineligible for any tax credits. Sure, there’s a push to manufacture the batteries in America, but where does most of the compounds in the batteries come from? You guessed it, China, or countries we currently do not have trade agreements with.

The Biden administration promised huge tax credits to transition to EV’s knowing full well they would never have to pay out on the majority of them. Can’t be giving the rubes any money when the federal government needs it!

Folks, we have been duped once again by a shady administration that is only interested in serving their own political interests. 2024 can’t come soon enough!

 

 

This story syndicated with permission from robm, Author at Trending Politics