‘Transitional’ climate bill for auto and energy industries
“A large number of middle-class Americans will be able to get this credit that would otherwise be blocked because of the line of credit,” said Joe Britton, executive director of the Zero Emissions Transportation Association. ,” Joe Britton, chief executive officer of the Zero Emissions Transport Association, whose members include Tesla as well as charging equipment manufacturers, battery material suppliers and other companies involved in the electric vehicle business. “That’s a big deal.”
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- Confronting China: In a bipartisan vote, Senate passes $280 billion bill aimed at building up America’s technological and manufacturing advantages against China. It was the most significant US government intervention in industrial policy in decades.
- Taiwan: The Biden administration is increasingly worried that China can try against self-governing island in the next year and a half – perhaps by trying to close the Taiwan Strait.
- Commercial policies: The new trade deal announced by President Biden during his Asia tour based on two big ideas: include China and move away from focusing on markets and tariffs.
For the first time, battery-powered used cars will be eligible for tax breaks of up to $4,000. That’s important because most people buy used cars, not new ones. The average price of a new electric car has risen above $60,000, out of reach for many buyers, even including the fuel economy and maintenance those cars offer.
Individuals earning more than $150,000 a year or couples earning $300,000 or more will not be eligible for the new electric car offer. The income limit on used car offers is $75,000 for individuals and $150,000 for couples. The credits will not apply to sedans selling for more than $55,000 and trucks, pickups, and sport utility vehicles listed at more than $80,000.
“They’re trying to drive adoption among lower- and middle-class buyers, and that’s a good thing,” said Akshay Singh, partner at PwC, an auto industry consulting and accounting firm. “That’s where the majority of the market is.”
The bill, which is more than 700 pages long, makes no mention of China. But some of the provisions appear designed to weaken that country’s hold on the electric vehicle supply chain, while making it harder for China’s emerging carmakers to export. car exports to the United States.
When it does exist, the 200,000-car limit on tax credits will give market newcomers a competitive edge like China’s BYD, who are expected to use electric vehicles to get in. US market. They can benefit from the credit while Tesla, the Texas-based company, cannot.