Big news on EV subsidies in the United States, this should make Allkem stock rally, because it cements are drastic increase in lithium demand. Note that EVs acquired after Dec 31st 2022 will qualify for EV credit.
Senate moves forward with EV tax credit reform, Tesla (TSLA) to be included back and more - Electrek
"We pulled the information from the bill and confirmed all the changes to the EV federal tax credit in the new version:
- Federal tax credit for EVs maintained at $7,500
- Eliminates tax credit cap after automakers hit 200,000 EVs sold, making GM and Tesla once again eligible
- The language in the bill indicates that the tax credit would be implemented at the point of sale instead of on taxes.
- In order to get the full credit, the electric vehicle needs to be assembled in North America, the majority of battery components need to come from North America, and contain a certain percentage of minerals from countries with free trade agreements with the US.
- A new federal tax credit of $4,000 for used EVs
- Zero-emission vans, SUVs, and trucks with MSRPs up to $80,000 qualify
- Electric sedans priced up to $55,000 MSRP qualify
- The full EV tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, $300,000 for joint filers
This would enable Tesla and GM to get access back to the credit – though in Tesla’s case, it would only apply to some versions of the Model 3 due to the new $55,000 price limit.
The new limit on gross income has also been greatly reduced."
U.S. Senate Democratic deal would expand EV tax credits | Reuters
"... new $10 billion investment tax credit to build clean-technology manufacturing facilities, according to a summary from Schumer's office. The bill that Schumer and Manchin agreed to also includes $2 billion in cash grants to retool existing auto manufacturing facilities "to manufacture clean vehicles, ensuring that auto manufacturing jobs stay in the communities that depend on them." If it becomes law, it will further provide up to $20 billion in loans to build new clean vehicle manufacturing facilities and $30 billion for additional production tax credits "to accelerate U.S. manufacturing of solar panels, wind turbines, batteries, and critical minerals processing."
"The deal would further provide $3 billion for the U.S. Postal Service to buy zero-emission vehicles and such EV infrastructure as charging stations."
"Biden has set a target to make half of all new vehicles sold in 2030 EVs or plug-in hybrids but has refused to endorse setting a date for phasing out internal combustion vehicles.In the bill, a further $1 billion would be set aside for schools and other government entities to purchase heavy-duty vehicles, such as school and transit buses and garbage trucks."
I pulled these ones from twitter:
"Commercial vehicles that weigh over 14,000 lbs are eligible for a $40,000 tax credit or 30% of cost of the vehicle (whatever is less)."
"Tax credit will expire in 10 years on Dec 31, 2032"
"Schumer-Manchin reconciliation bill has $369 billion allocated to various programs to fight climate change and preserve the environment."
