Not that Tesla CEO Elon Musk needs any more good luck to continue building his fortune, but the Democrat-controlled Senate under President Joe Biden’s administration is moving toward helping electric vehicle manufacturing business.
Earlier this month, Democrats in the House of Representatives reintroduced the GREEN Act, which would likely prove to benefit Tesla, Ford and GM via extending federal EV tax credits.
The individual buyers would see a quick $7,000 off the price of electric vehicles, which include Tesla’s Model 3 and GM’s Chevy Bolt, both currently priced in the $35,000 to $40,000 range.
Representative Mike Thompson (D-CA) and Chairman of US House Ways and Means Subcommittee on Select Revenue – along with every one of the Democratic leaders on the subcommittee – signed on.
Congress, which is taking this week off, could very well take up this bill that resembles one introduced last June. The Trump administration did not have green initiatives high on its priorities list, however, and the bill failed.
The current proposal is largely the same bill, but includes key changes to the current EV tax credit system.
As of now, qualifying vehicles are eligible for up to a $7,500 tax credit. Under the proposed legislation, the max amount would become $7,000.
A major component of the bill would be the elimination of the 200,000-vehicle ceiling on these credits — the cap Tesla and GM passed in 2019 and early 2020. Throughout 2019, Tesla’s credits started to reduce, in accordance with the current law, and buyers snapped up all credits by the end of 2019. By March of 2020, GM ran dry, too.
With no ceiling, Tesla and GM would have a fresh start, with the 2021 GREEN Act capping the credits at 600,000 qualifying vehicles sold.