Tax credits increase for electric cars in the US By Benzinga Spain

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What has happened: A $ 7,000 tax credit may soon be granted to hundreds of thousands more electric vehicle (EV) buyers in the United States, with a possible review of the purchase incentives coming into the country.

The Growing Renewable Energy and Efficiency Now (GREEN) Act, legislation introduced by the Democratic Party, seeks to increase tax credits issued to buyers of electric vehicles. US EV makers Tesla Inc (NASDAQ :), Ford Motor Company (NYSE: NYSE :), and General Motors Company (NYSE: NYSE 🙂 are highly likely to be the top earners, considering current sales Tesla worldwide, while Ford and GM continue their momentum in the market.

Here are the details of the legislation that involves the electric vehicle industry in general:

The provision expands the credit granted for plug-in electric motor vehicles UNDER Section 30D to apply a new transition period for a manufacturer’s vehicle sales between 200,000 and 600,000 electric vehicles, under which, the credit is reduced by 500 Dollars.

The provision replaces the current withdrawal period (which begins at 200,000 vehicles) with a period that instead begins during the second calendar quarter after the 600,000 vehicle threshold is reached. At the beginning of the new phase-out period, the credit is reduced by 50% for one quarter and ends thereafter.

For manufacturers that pass the 200,000 vehicle threshold prior to the enactment of this bill, the number of vehicles sold between 200,000 and those sold on the enactment date is excluded to determine when the 600,000 vehicle threshold is reached.

Why it matters: Democrats are back in the White House with a majority in both the House and Senate.

The adoption of clean energy by the Biden administration is expected to provide favorable business conditions for electric vehicle manufacturers in the coming years, boosting the overall EV, fuel cell and biogas industries.

Read the article also in Benzinga Spain

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