Biden’s Plan to Win the Electric Vehicle Market
President Joe Biden is serious about taking America’s electric vehicle (EV) production to the next level.
According to the fact sheet for Biden’s American Jobs Plan, the U.S. EV market is only one-third the size of China’s.
In order to “win the EV market,” Biden is proposing a $174 billion investment in American EV manufacturers, as well as in a variety of major EV projects across the U.S.
Today, let’s look at some of the main ways that Biden’s plan would affect EVs in the years ahead.
Major Electric Vehicle Projects in Biden’s Plan
Here are a few of the EV highlights from the American Jobs Plan:
- Point-of-sale rebates and tax incentives for American-made EVs. While you can already get a tax credit for buying a qualifying EV, you have to wait until you file taxes to see any benefit. Under Biden’s plan, buyers save money immediately when they make a purchase, which will help make EVs more affordable.
- Grant and incentive programs for EV chargers. Biden’s plan calls for state and local governments to build a national network of EV charging stations. His goal is to reach 500,000 EV chargers across the U.S. by 2030. According to Statista, there are less than 100,000 chargers in the U.S. as of February, so this plan would grow our nation’s charging network by more than 400%.
- Electric vehicles for schools and the U.S. Postal Service. The Clean Buses for Kids Program would replace at least 20% of school buses with new electric versions. Eventually, the plan is to make our school bus fleet completely electric. The Postal Service is also slated for an upgrade to electric vehicles. This overhaul is way overdue, as most of the service’s current vehicles were built in the late ‘80s or early ‘90s.
- Jumpstart America’s clean energy manufacturing. Biden’s plan is to use $46 billion in federal funds to speed up clean energy projects across the U.S. Part of that funding will go toward helping build EVs and charging ports in an effort to achieve net-zero carbon emissions by 2050.
- Financing programs and tax credits for U.S. manufacturers. These programs would invest at least $52 billion in American companies, with a focus on clean energy products such as EVs. The plan also calls for $50 billion to support domestic industrial production, as well as $50 billion to help manufacture the semiconductors used in EVs and many other products.
Of course, the money for these ambitious projects won’t appear out of thin air. Biden wants to pay for them by raising corporate tax rates and closing tax loopholes.
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Assistant Managing Editor, Banyan Hill Publishing