Axios: "The Limits of the Electric Car Credits"
RFF Fellow Beia Spiller's blog post on electric vehicle tax credits outlined in the Inflation Reduction Act is featured in this newsletter.
A new analysis starkly lays out the limits of U.S. electric vehicle tax incentives in the Democrats' soon-to-be-enacted climate bill, Ben writes...
What's new: Beia Spiller of Resources for the Future (RFF), a nonpartisan think tank, translated Congressional Budget Office estimates of the incentives into projected real-world sales.
Even by 2030, vehicles purchased using the credits would be just 3% of total global EV sales last year.
Threat level: "[G]iven the country’s goals for achieving 50 percent zero emission vehicles by 2030, the tax credit will not go far enough," writes Spiller, who leads RFF's transportation program.
- "Until auto manufacturers in the private sector make significant changes to their manufacturing processes and resulting vehicle price points, you — and most other car buyers in the market for EVs — may need to forego the tax credit if you want to go electric."
