A clean energy tax credit bill worth some $259.5 billion can advance to the Senate floor after the upper house's Finance Committee voted 14-14 on it, Bloomberg reports, noting that despite the even votes house rules allowed the Democrats to advance the legislation.
The bill, which includes $31.6 billion in incentives for EV buyers, seeks to consolidate tax credits for renewable energy, including incentives for any carbon-free energy source. It targets everyone in the supply chain, from investors in electricity generation projects to households, offering incentives for energy efficiency improvements of homes and clean fuel tax breaks.
The incentives for electric vehicle buyers are particularly generous: buyers can claim a credit of up to $12,500 for a car that was assembled in the United States at a company whose workers are unionized and whose price tag is up to $80,000.
The legislation is part of the Biden administration's $4-trillion infrastructure and green energy spending plans, which includes $174 billion in EV-related investments. The president made a case for the plan earlier this month in Detroit, calling on U.S. automakers to not outsource the manufacturing process.
"We need automakers and other companies to keep investing here in America and not take the benefits of our public investments and expand electric vehicles and battery manufacturing abroad," Biden said at the launch.
Biden's EV plan envisages a total of $100 billion in consumer rebates as well as $51 billion for the construction of half a million charging stations across the country. Although the White House, according to a Reuters report, has yet to reveal how the rebates would be distributed, they will likely help carmakers make their EVs more attractive to buyers, especially given that some, such as Tesla and GM, are no longer eligible for the current tax incentives for EV purchases.
By Charles Kennedy for Oilprice.com
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