Ever since President Joseph Biden assumed office, his administration has made it clear that electrifying America’s roads will be a top priority. Biden spent his first months in office working on and subsequently unveiling a gargantuan infrastructure bill that would invest billions of dollars into beefing up the country’s woefully inadequate electric vehicle (“EV”) public charging infrastructure. This was followed by a recent announcement by the White House stating that the government was looking to achieve 50% electric vehicle sales by 2030 in a bid to meet emission standards.
Now the Democrats, who have a majority in both the House and Senate, have proposed an updated, federally funded, electric vehicle incentive program through the $3.5 trillion spending bill that was recently passed by the senate. The updated incentives program would do away with the limit on the number of vehicles from a single automaker that could be subsidized, replacing it with a timeline, introducing a higher $12,500 payout and making the program point-of-sale. While America currently has an incentives program for zero-emission electric vehicles that has helped with EV adoption, the existing program has plenty of flaws that make it less effective than it could be.
For instance, it caps off the $7,500 tax credit to 200,000 electric cars per vehicle manufacturer, which puts the early adopters of electric vehicle technology such as Tesla and General Motors at a disadvantage, essentially punishing them from venturing into the EV space before anyone else. Additionally, since this $7,500 incentive comes as a tax credit, prospective EV owners will have to have the equivalent federal tax burden and the incentive will only be applied on their next taxes. The recently unveiled Clean Energy for America Act sought to increase the incentive to $12,500 and remove the 200,000 cap for automakers.
Approved by the House Ways and Means Committee, the new version of the EV incentives program would remove the 200,000 vehicles per manufacturer cap, maintain the $7,500 incentive for five years and make it a point-of-sale discount rather than a tax credit, as well as add an extra $4,500 incentive for electric vehicles assembled at union plants. Electric vehicles using battery packs with 50% locally made components would get an additional $500, and after five years, the $7,500 incentive would only apply to locally made EVs and last for another five years.
The updated EV incentives program introduced price limits on the electric vehicles eligible for the incentive, with sedans under $55,000, SUVs under $69,000, pickup trucks under $74,000, and vans under $54,000 being eligible. It also put a gross income cap of $400,000 for individuals and as much as $800,000 for joint filers.
Such federal government initiatives add ballast to the work of electric vehicle sector players such as DSG Global Inc. (OTCQB: DSGT), which would encourage as many motorists as possible to switch to EVs.
NOTE TO INVESTORS: The latest news and updates relating to DSG Global Inc. (OTCQB: DSGT) are available in the company’s newsroom at http://ibn.fm/DSGT
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