The Biden administration urges Congress to expand its incentives to spur the US electric vehicle market, which is still lagging behind the adoption of EVs in its economic rival, China.
The proposed extension of the suspension of EV purchases is part of a $ 2.25 trillion infrastructure and stimulus blueprint called the “American Jobs Plan,” which Biden will unveil in Pittsburgh Wednesday afternoon. Details announced by the White House..
Biden’s proposal includes long-anticipated updates to roads, airports, and other parts of US infrastructure, but as part of his campaign promise, the plan is with climate change. It looks like moving the needle into the fight. In addition to boosting EV purchases, this plan requires more charging infrastructure and electric school buses.Congressional Republicans say They are worried Corporate tax proposals to fund the plan could delay the economy out of the slump in COVID-19.
Rebates and tax credit extensions
Consumers and investors will find Biden calling on Congress to maintain tax incentives that encourage more drivers to buy EVs. These tax credits are currently valued at up to $ 7,500 per purchase, but Tesla Inc.
And General Motors Co., Ltd.
The value of these credits has already exceeded the 200,000 cap per existing manufacturer, which is gradually declining.
The White House says, “While giving consumers POS rebates and tax incentives to buy American-made EVs, these vehicles are doing a good job at an affordable price for all families. We are asking Congress to “guarantee that it will be manufactured by workers.”
Senators Debbie Stabenow and Dan Kildee, Democrats of Michigan’s Legacy Automotive State, are working with the White House and Democratic leaders to plan to lower the 200,000 vehicle cap.
Washington is also considering changing to current tax incentives to better target tax credits to middle- and low-income car owners. This was part of the Biden campaign’s tax system, according to the Tax Policy Center.
The US market share of plug-in EV sales is one-third that of China’s EV market.
“The president believes we have to change that. He is proposing a $ 174 billion investment to win the EV market,” the White House said in a statement. “His plans enable automakers to promote the domestic supply chain from raw materials to parts, remodel factories to compete globally, and help American workers manufacture batteries and EVs. I will. “
Car makers are expected to support the proposal They tried and failed Recently, to secure an extension of EV tax credits in lobbying.
“With a potential of about $ 200 billion, or about 10%, of this plan for a chattering-based electric vehicle initiative from Beltway, the street will eventually see two components through the house, I think it needs to be enacted to “change the game.” “US EV sector,” said Wedbush analyst Daniel Ives.
“First, we will extend the tax credit currently valued at $ 7,500 for EV vehicles to more than $ 10,000 for tiered systems. Other POS rebates will also be included in this broad infrastructure bill, allowing consumers to You can encourage them to follow the EV path, “says Ives. “Second, we expect to raise the 200,000 cap per manufacturer of credits that will be phased out. This will restore the strong Tesla and GM EV tax credits.”
Tesla shares, which surged about 580% over the past year, retreated in early 2021 and have fallen about 7% over the past year. Wednesday’s share price rose 3% as EV incentive news hit the market.
To avoid being left behind, legacy carmakers are boosting investment in EVs and self-driving cars. In fact, GM has announced that it will phase out internal combustion engine vehicles within 15 years.
Blue Horizon analyst John Mitchell told MarketWatch: Claudia Assis.
GM’s share has grown 199% over the past year and 38% year-to-date. EV stock Nikola Corp focused on trucks.
And Workhorse Group Inc.
We have also seen the benefits of high-flying flights cool in early 2021.
Global X Autonomous and Electric Vehicle ETFs
It was trading at a high price at the beginning of Wednesday.
Growth strains (EVs included in the group) were hit by rotations to value strains, including airlines and restaurants, especially as COVID-19 vaccination became more widespread.
Other tax-based incentives for climate change presented in Biden’s Wednesday announcement include a proposed extension of tax credits to create underground storage for carbon capture and investment tax amounts focused on power transmission. A deduction was included. Biden’s initiative will also extend the tax credits that have benefited wind, solar and other renewable energy projects by 10 years.
Biden’s infrastructure plan includes pitching electric vehicle rebates — Tesla, GM and Nikola shares increase
http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D34DE8BBEDFB%7D&siteid=rss&rss=1 Biden’s infrastructure plan includes pitching electric vehicle rebates — Tesla, GM and Nikola shares increase