The US Senate managed to vote ahead of the parliamentary recess to pass the Inflation Reduction Act, which includes measures to support the transition to electric vehicle use by the nation’s citizens. Nearly $400 billion will be allocated to environmental protection over the next decade, a portion of which will be used to subsidize EV purchases at a rate of $7,500 per electric car.
The US already had similar incentives in the form of a tax deduction, but EV buyers had to wait several months for documentation to receive it. Second, a quota of 200,000 electric vehicles sold has been set for each automaker, and the same Tesla and GM have long since chosen their limit. Now this limitation AWAYand all automakers are given equal rights to participate in the program, albeit under certain conditions.
First off, the subsidy will be granted immediately upon purchase of an electric car, and for used vehicles valued up to $25,000, the rebate is $4,000, and plug-in hybrids will also be eligible for the program if they have the capacity to do so Traction battery exceeds 7 kWh. For new EVs, the cap on subsidized purchases is $55,000, and for passenger EVs $80,000. It is already clear that expensive versions of Tesla and Rivian crossovers, as well as GM Hummer EVs, do not fall under these requirements.
After all, the main condition for participation in the program is the organization of the production of the corresponding models in the United States, also certain localization requirements for the composition of traction batteries are imposed, which will be formulated in more detail later. The traction battery or its raw materials must come from at least one country that has a free trade agreement with the USA.
US citizens are only eligible for the subsidy if their annual income does not exceed $150,000 per year. The program will start in January 2023 and will run for ten years.