HomeBusinessInflation Reduction Act EV tax credits could hurt sales

Inflation Reduction Act EV tax credits could hurt sales

Tesla cars charge next to a traditional Texaco gas station on July 17, 2022 in Nephi, Utah. With more electric cars on the road, lack of charging infrastructure is becoming more of a problem for EV owners.

George Frey | Getty Images

Proposed tax credits of up to $7,500 for electric vehicles under the Inflation Reduction Act could be counterintuitive for sales of EVs, according to several companies and a group representing major automakers such as General Motors, Toyota Motor and Ford Motor.

The new rules would raise a sales threshold for qualification, but would impose materials sourcing and pricing stipulations, along with personal income caps.

The federal government has used EV tax credits as a tool to promote the adoption of electric vehicles and lower the U.S. automotive industry’s reliance on fossil fuels. Electric vehicles are currently far pricier than their gasoline counterparts…

Read more at www.cnbc.com

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