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A new bill in Congress aimed at slashing tax credits for electric vehicles could significantly impede their production in the United States.
What’s happening?
Congressional Republicans introduced a bill that would eliminate the EV tax credit from the Inflation Reduction Act, Electrek reported. The publication noted that the bill’s main sponsor has considerable ties to the oil and gas industry, having received more than a half-million dollars in the most recent election cycle.
The article also said that proponents of the bill are being deceptive in their assertions that the current credits are a giveaway to the wealthy, as they are actually aimed toward lower-income folks.
Meanwhile, it said that the proposed bill would discourage American EV manufacturing and ultimately hand the lead in global EV production to China. Plus, the bill simultaneously aims to defund investments in EV charging infrastructure, according to The Verge.
If passed, the act would most certainly be vetoed by President Joe Biden if he is still in office.
However, one commenter noted: “Even if this bill doesn’t pass it will achieve its objective. It sends a message to investors that their investments are on shaky ground and could evaporate. Making the future of EVs look uncertain is all that needs to be done to kill investment.”
