EV tax credits are back — and bigger — in new Senate climate bill - The Verge

Electric vehicle tax credits are back on the table after Senators Chuck Schumer and Joe Manchin struck a deal on the passage of a $389 billion clean energy bill.

Senator Joe Manchin has had a change of heart about electric vehicles.

The West Virginia Democrat, who previously described federal tax credits for EVs as “ludicrous,” announced a surprise deal with Senate Majority Leader Chuck Schumer on a reconciliation package that includes $369 billion for climate and energy measures aimed at slashing carbon emissions by 40 percent by 2030.

The bill would allow car buyers to continue to claim the current $7,500 federal tax credit for the purchase of “clean vehicles” — the new preferred phrase describing plug-in hybrid, battery-electric, and hydrogen fuel cell vehicles, replacing the old phrase “new qualified plug-in electric drive motor vehicle.”

It would also remove the current 200,000 vehicle cap before triggering a phase-out of the tax credit, a huge win for companies like Tesla, Toyota, and General Motors, which have all sold more than 200,000 EVs.

In an entirely new provision, the bill includes a $4,000 tax credit for the purchase of a used clean vehicle, a potential boon for middle and low-income car buyers who are less likely to be able to afford a brand new EV but are still hoping to switch to something less polluting.

https://www.theverge.com/2022/7/28/23282156/ev-tax-credit-used-vehicle-senate-deal-schumer-manchin

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