A new bill in Congress aims to cut the $7,500 tax credit for electric vehicles (EVs), making them more expensive for new buyers. The Eliminating Lavish Incentives to Electric Vehicles Act would also cease federal investment into charging stations.
The bill’s sponsor, Sen. John Barrasso, claims it’s an effort to prevent unnecessary government spending. However, Rep. Steve Frisbie (R-Calhoun County) believes the money could be better spent elsewhere and thinks EV mandates are “disconnected” from consumer affordability.
Frisbie suggests that governments should focus on making electricity more affordable first before investing in infrastructure. In contrast, Paul Pancella, president of the Kalamazoo Electric Vehicle Association, argues that an investment to offset the costs of electric vehicle development is warranted.
Despite this, sales of EVs continue to rise, and Michigan gas consumption has gradually declined since around 2000, according to the Department of Energy. The decision on the tax credit’s fate may impact the growth of EVs in the state.
Source: https://wwmt.com/news/local/possible-repeal-electric-vehicle-tax-credit-ev-charging-station-funding-michigan-electricity-reactions