Electric cars will get tax breaks in U. S.
2022.12.29 06:34
Electric cars will get tax breaks in U. S.
Budrigannews.com – As part of a larger effort to get polluting, workhorse vehicles off the roads and out of neighborhoods, the United States will offer incentives to delivery companies and other businesses on January 1 to switch to electric trucks.
Under President Joe Biden’s Inflation Reduction Act (IRA), the first-of-its-kind incentives will provide tax credits of $7,500 or $40,000, depending on the size of the electric vehicle (EV). Companies that deliver packages, like FedEx likewise Amazon.com would be eligible for many of their electric trucks at the $7,500 level.
California, New York, and other states’ voucher programs, which are spending billions of dollars to convince businesses to switch to zero-emission vehicles, can be combined with these tax credits. The “made in the USA” rules that apply to passenger cars do not apply to the commercial EV credits offered by the IRA.
More than one third of the greenhouse gases produced in the United States that contribute to the warming of the planet are produced in the transportation sector, which includes large and small trucks, buses, and airplanes.
In a year marked by additional climate change-related floods, hurricanes, and droughts, governments and businesses have been forced to examine the financial risks and their liability exposure more closely.
Experts stated that incentives should assist in bringing EV sticker prices closer to those of conventional gas-powered vehicles.
Ben King, an associate director at the research company Rhodium Group, stated that this will “help level the playing field for electric vehicles.”
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Jim Farley is the CEO of Ford Motor Company (NYSE:), a market leader in electric vans. This year, Co predicted that “dramatic impact on the adoption of EVs” would result from IRA tax credits.
Experts stated that a greater number of commercial EV purchases should bring down vehicle sticker prices and manufacturing costs.
Jim Chen, Rivian’s vice president of public policy, stated, “We’re at a tipping point.” Rivian has Amazon-branded electric vehicles on the road in more than 100 U.S. cities. Amazon in an email told Reuters it anticipates that the IRA should “change our aggregate way to deal with lessening fossil fuel byproducts across areas.”
General Motors CEO Travis Katz stated, “We’re already hearing from customers that they’re excited about this.” FedEx and Walmart are customers of BrightDrop (NYSE:) as well as DHL Express Canada as clients.
According to Paul Rosa, senior vice president of procurement and fleet planning at Penske Truck Leasing, the EV incentives may encourage early adopters to purchase EVs, but they are insufficient to entice a large number of customers. He claimed that this is due to the fact that they may include stringent regulations and do not close the sticker-price cost gap.
