New details have emerged about President Biden’s $2.3 (£1.6 / €1.9) trillion infrastructure proposal known as the American Jobs Plan.
While the White House had already confirmed the proposal included $174 (£126 / €146) billion to “win the EV market,” specifics were lacking as the announcement simply called for giving “consumers point of sale rebates and tax incentives,” establishing grants and incentives to spur 500,000 EV chargers by 2030, replacing diesel-powered buses with electric ones, and electrifying the U.S. Postal Service.
Fast forward to today and the U.S. Department of Transportation has revealed a number of details in an email sent to congressional staffers. The email was seen by Reuters and they’re reporting the proposal includes $100 (£72 / €83) billion in rebates for people who purchase electric vehicles. There’s no word on how that money would be doled out or if there would be price caps, but it’s a major win for automakers.
Depending on the specifics, Tesla and GM could be the biggest beneficiaries as the proposal could enable their electric vehicles to be eligible for incentives. Both companies hit their quotas years ago and this means vehicles such as the Chevrolet Bolt and Tesla Model 3 no longer qualify for a $7,500 tax credit.
This makes the 2022 Bolt EUV a tough sell as the $33,995 crossover has to compete with the Volkswagen ID.4 and Ford Mustang Mach-E, which cost $33,690 and $36,495 after the credit and delivery charges. Last month, GM President Mark Reuss called for that to change so “customers of first movers like GM are not penalized.”
Besides the EV tax credits, the proposal includes $15 (£11 / €12) billion for EV charging stations, $20 (£15 / €16) billion for electric school buses and $25 (£18 / €21) billion for other zero emission vehicles.