To EV or Not to EV

WASHINGTON - Fewer new electric vehicles (EVs) will qualify for a full $7,500 federal tax credit later this year, many will get only half, under rules proposed March 31 by the U.S. Treasury Department. The rules are likely to slow consumer acceptance of EVs and may delay President Biden’s ambitious goal that half of new passenger vehicles sold in the U.S. run on electricity by 2030. The new rules begin April 18. It's intended to reduce American dependence on foreign countries for battery supply chains for EVs. Electric vehicles now cost more than $58,000, according to Kelley Blue Book. The tax credits are designed to bring prices down. But $3,750, may not be enough to entice buyers away from gasoline-powered vehicles. Biden administration officials concede that fewer EVs will be eligible for tax credits in the short term, but over time, EVs and parts will be manufactured in the U.S., creating a domestic supply chain and more jobs. The credits and other measures also will end U.S. dependence on China for parts and minerals, officials contend. (The AP 03/31/23) Many electric vehicles to lose big tax credit with new rules | AP News