Automakers group says most electric vehicles won't quality for tax credit in Senate bill

Brett Molina, USA TODAY
·2 min read

An automotive group representing carmakers including Ford, General Motors and Toyota said most electric vehicles will be ineligible for a tax credit proposed under a new Senate bill.

In a statement released Sunday, John Bozzella, president and CEO of the Alliance for Automotive Innovation, said a tax credit available in the Inflation Reduction Act approved by the Senate "will immediately reduce" the number of vehicles eligible.

Bozzella said 70% of the electric vehicles available to buy in the U.S. would become immediately ineligible once the bill passes, and none of the vehicles would qualify for the full credit.

"That’s a missed opportunity at a crucial time and a change that will surprise and disappoint customers in the market for a new vehicle," Bozzella said in a statement.

The wealth gap: These traits are common with affluent Americans. How do you compare?

Investing: It might be good for your sanity not to look at your investments right now. Here's why.

The group says the reason many vehicles would automatically lose eligibility are requirements in the Clean Vehicle Credit that include sourcing critical materials for the battery from North America or a U.S. free trade partner.

The value of the credit also will depend on which components of the vehicle's battery were built in North America.

Any electric and plug-in hybrid vehicles purchased new in or after 2010 are eligible for a federal tax credit of as much as $7,500, according to fueleconomy.gov, which also features a list of eligible vehicles.

In a separate blog post, Bozzella called the requirements in the credit unattainable and punitive to consumers.

"A more gradual phase in of the battery component, critical mineral and final assembly requirements – that better reflect current geopolitical, sourcing and mineral extraction realities – will preserve the credit for millions of Americans and keep the country focused on building domestic supply chains able to support our electrified transportation future," he wrote.

Automakers are pivoting toward electric vehicles as rising gas prices have many Americans considering whether to shift from gas-powered cars. A survey released in May by J.D. Power found more car buyers were considering going electric for their next vehicle.

Follow Brett Molina on Twitter: @brettmolina23.

This article originally appeared on USA TODAY: Electric cars: Most will miss tax credit in Senate bill, group says

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Q1 2024 Hub Group Inc Earnings Call

    Q1 2024 Hub Group Inc Earnings Call

  • Dunelm's hanging egg chair has completely transformed my outdoor space

    After a month of trialling one of the most popular hanging egg chairs on the market, Dunelm's Singapore Hanging Egg Chair, here are my honest thoughts.

  • Star driver Josef Newgarden fights back tears, accepts blame for breaking rules in IndyCar scandal

    Reigning Indianapolis 500 champion Josef Newgarden blinked back tears Friday as he accepted blame for manipulating the push-to-pass system in his season-opening IndyCar win that has since been stripped, calling it an embarrassment. Newgarden gave an emotional 25-minute news conference at Barber Motorsports Park in his first public comments since IndyCar punished him Wednesday by taking away his March 10 victory at St. Petersburg, Florida. “I want to deeply apologize to our fans, our partners, my teammates, the competitors that I race against,” Newgarden said.

  • Long flu season winds down in US

    The U.S. flu season appears to be over. Last week, for the third straight week, medical visits for flu-like illnesses dipped below the threshold for what's counted as an active flu season, the Centers for Disease Control and Prevention said Friday. Other indicators, like hospitalizations and patient testing, also show low and declining activity.

  • TotalEnergies chief calls potential EU sanctions on Russian LNG a financial boon

    Sanctions on Russian gas from the Yamal LNG project would cause prices to spike and profit global gas sellers including TotalEnergies, chief executive Patrick Pouyanne said on Friday, in response to an analyst question about the impact of potential EU sanctions. "If the EU sanctions Yamal LNG, the price of LNG will go up quickly and globally our portfolio will benefit," Pouyanne said. "It's a positive if there were sanctions, not a negative, because the cash from Yamal is quite limited," he added.

  • Shapovalov downs Etcheverry, advances to third round at Madrid

    MADRID — Canada's Denis Shapovalov advanced to the third round of the Madrid Open tennis tournament with a 7-6, 6-3 win over Argentina's Tomas Etcheverry on Friday. Shapovalov had to overcome issues with his serve to defeat the 26th-seeded Argentine in two hours three minutes. The 25-year-old from Richmond Hill, Ont., hit into 12 double faults and only landed 58 per cent of his first serves. But he had eight aces, compared to one for Etcheverry, and converted three break points to Etcheverry's t

  • Florence Welch Forgot About the 'Bigness' of Taylor Swift's Fame Until 'Florida!!!' Dropped: 'I Was Like, Oh S---!'

    The Florence and the Machine frontwoman collaborated with Swift on "Florida!!!" from the superstar's new album, 'The Tortured Poets Department'

  • Council Approves Updated IT Services Agreement with Middlesex County

    ADELAIDE METCALFE - Council discussed and approved a revised Information Technology Service Agreement with Middlesex County on April 15. The council meeting featured discussions led by Michael Barnier, Clerk & Manager of Legislative Services, and supported by Chris Bailey, Director of Information Technology Services at Middlesex County. Council has been under an IT services agreement with Middlesex County since June 2018. The arrangement, described by Barnier as crucial for providing affordable

  • Worried About Assisted Living Costs? Here Are Your Options

    Long-term care in residential facilities like nursing homes is a financial challenge for many. When dealing with a loved one who is disabled, elderly or ill, families often try every other kind of long-term care facility first. Because nursing homes … Continue reading → The post Nursing Home Costs: How You Can Cover Them appeared first on SmartAsset Blog.

  • Bethenny Frankel uses this 'hydrating, plumping, brightening' vitamin C serum every day — it's on sale for just $17

    The RHONY star’s favorite Bliss Bright Idea is 'amazing for hyperpigmentation' and it's nearly 40% off.

  • Giant velociraptor bigger than Jurassic Park imaginings discovered

    When Jurassic Park introduced the world to the 6ft velociraptor, disdainful palaeontologists were quick to point out that the dinosaurs were actually about the size of turkeys.

  • Poacher faces potential judgment of over $13 million for senseless act

    A 20-year-old man suspected of killing nearly 18,000 young salmon at an Oregon fish hatchery faces serious poaching and vandalism charges.

  • Tree Planting Tips for Arbor Day

    An estimated one million trees are planted on Arbor Day, a day dedicated to celebrating and conserving trees. House Digest reports that approximately 42 million trees are cut down every day, equalling more than 15 billion trees a year.

  • Stock Market Rebounds; Tesla, Microsoft, Google, Meta, Chipotle, GE In Focus: Weekly Review

    The stock market rebounded this week fueled by big-cap earnings winners Microsoft, Tesla, Google, GE and Chipotle. Meta was a notable loser.

  • Ask an Advisor: When Taking RMDs, How Do I Avoid Locking in Losses? I'll Be 72 Years Old Soon, and My Stocks Are ‘Way Down' This Year

    I will be 72 years old on Feb. 10, 2023. I have a traditional individual retirement (IRA) account. Most of the money is tied in stocks, and the stocks this year are way down. If I sell to pay the … Continue reading → The post Ask an Advisor: When Taking RMDs, How Do I Avoid Locking in Losses? I'll Be 72 Years Old Soon, and My Stocks Are ‘Way Down' This Year appeared first on SmartAsset Blog.

  • Have your photos published in the Guardian’s letters section

    We’re highlighting the best reader photography in the Guardian in print and online. Share your images with us below

  • Suffolk bridge labelled a ‘modern art monstrosity’ after council repairs

    Residents have likened a council’s repair job to a 125-year-old bridge to a modern art monstrosity after patching it up with mismatched bricks.

  • Bayern Munich signals decision is near on new coach to replace Thomas Tuchel

    FRANKFURT, Germany (AP) — Bayern Munich honorary president Uli Hoeness says he expects a decision within a week on a new coach to replace Thomas Tuchel. Tuchel is leaving at the end of the season after Bayern was beaten to the Bundesliga title by Bayer Leverkusen, although the team is facing Real Madrid in the Champions League semifinals next week. “I think we will have a decision within a week,” Hoeness said on Friday in comments reported by the Frankfurter Allgemeine Zeitung newspaper. Since T

  • What to know about Bell's palsy, the facial paralysis affecting Joel Embiid

    Philadelphia 76ers All-Star center Joel Embiid has been diagnosed with Bell's palsy, a condition that can strike out of the blue and cause muscles on one side of a person's face to become weak or paralyzed, distorting expression. Here’s what to know about the mostly temporary condition: WHAT IS IT? Bell’s palsy occurs when something inflames or injures a nerve that controls facial muscles. Symptoms come on rapidly over two to three days. They can include difficulty closing an eyelid, a drooping

  • Ask an Advisor: My Dad Left Me $200k in an IRA, but I'm in the 35% Tax Bracket. How Should I Structure My Withdrawals?

    I was left $200,000 in an IRA Beneficiary Distribution Account (BDA) when my father passed. I have 10 years to withdraw this money. I'm at the 35% federal tax rate currently and plan to make a similar annual income over the next 10 years. Taking the money out in one lump sum would not change […] The post Ask an Advisor: My Dad Left Me $200k in an IRA, but I’m in the 35% Tax Bracket. How Should I Structure My Withdrawals? appeared first on SmartReads by SmartAsset.