Expanding tax credits for luxury vehicles won't do anything to fix "climate change," especially since we can't source them here thanks to Biden.
Real Clear Energy (8/8/22) column: "Senator Manchin’s (W.Va) new Inflation Reduction Act (IRA) dedicates hundreds of millions of dollars to addressing climate change, including tax credits for new and used electric vehicles (EVs). Unfortunately, the tax credits are practically useless and will do little, if anything, to help boost the EV market and decrease emissions. The IRA tax credits also come with a caveat — all EVs purchased with the tax credits must be made with materials from the US or in countries with which we have a free-trade agreement and the vehicles must be sold below a certain price cap. But here’s the rub — thanks to regulatory red tape from the Biden administration, the United States doesn’t have the materials needed to build EVs domestically, but we should, considering all the rare earth mineral deposits across the country....Yet federal and state climate policies — including the IRA’s EV tax credits — are creating high demand for rare minerals as they push for renewable energy mandates and EV tax breaks. Unfortunately, we can’t have a clean, green future without natural resources, such as those critical minerals. The 'made in America' requirement put upon EV companies to receive IRA tax credits completely ignores the harsh reality that the US is not able to provide the very materials needed to manufacture the vehicles. This will result in the government choosing which EV companies will win or lose in the market, as only select companies can fulfill the IRA requirements.
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