The U.S. Congress approved legislation on Thursday that will put an end to support for the purchase or long-term rental of electric vehicles in the U.S., which will take effect on September 30.
According to “Reuters,” this decision marks a crucial shift in the journey towards electric mobility, as it will delay the energy transition in the U.S.
Before the bill’s approval by Congress, new electric vehicles received a federal tax credit of $7,500, and used electric vehicles up to $4,000. These incentives were originally designed to help make vehicles 100% more affordable.
These federal supports, combined with other incentives in many U.S. states, helped to reduce the prices of electric vehicles and contributed to electric mobility. Without these supports, analysts claim that electric cars will become unaffordable for many lower-income Americans.
The now-approved legislation also eliminates penalties for automakers that do not comply with the emissions regulation, “Corporate Average Fuel Economy,” also known as C.A.F.E., further facilitating the production of gasoline-powered vehicles. This benefits traditional manufacturers such as Stellantis, which paid $190.7 million in 2019-2020, and General Motors, which paid $128.2 million in 2016-2017.
By removing these penalties, the bill reduces the financial pressure on the automotive sector to prioritize electric vehicles, which may slow down innovation and production.
