The Biden administration has made no secret of its goal of speeding America’s shift toward electric vehicles (EVs). A recent $2.3 trillion infrastructure proposal, said to be Biden’s highest legislative priority, includes at least $174 billion in funding to promote EVs. Now, Reuters reports, details of that spending are emerging. Most of it could end up directly going to help consumers buy new cars.
Reuters reporters obtained an email from the Department of Transportation to Congressional staff, providing deeper details on Biden’s proposal. The plan is heavy on direct aid to buyers. It includes $100 billion set aside to provide rebates to Americans who buy electric cars.
The proposal would dramatically modify the current EV rebate system. Today, buyers must first purchase the vehicle and then claim a deduction of up to $7,500 the next time they file taxes. Biden’s proposal would provide a rebate as part of the sale itself. Reuters did not say whether that rebate would remain at the $7,500 level.
The original federal EV tax incentive program launched under former President Obama received just $2.4 billion of funding. Biden’s proposal provides more than 41 times that amount of funding.
Other parts of Biden’s American Jobs Plan include $15 billion to fund 500,000 new EV charging stations. That breaks down to about $30,000 per charger — a number some lawmakers say is too low.
