We knew EV rebates were included in the plan, but not exactly how much the government would provide for them.
President Joe Biden's proposed infrastructure legislation rings in at a lofty $2.25 trillion, and included in the price tag is a big sum of money specifically for electric car rebates. No, not a tax credit, but rebates taken off the price at the point of sale. It'd be a massive change from the structure currently in place today.
We now have an idea of how much the Biden administration is prepared to throw at these EV rebates, and it's a very significant amount of money: $100 billion. Reuters reported Wednesday on an email the Department of Transportation sent to Congress with more details on the plan, and included the specific dollar figure for EV rebates. The DoT didn't immediately return Roadshow's request for comment.
It's easy to get lost in the numbers, but let's put that in perspective. The Obama administration originally allocated just $2.4 billion in funding for the federal EV tax credit program, which awards up to $7,500 for a buyer filing taxes. If $2.4 billion can take $7,500 off the price of a car with a tax credit, imagine what $100 billion could do to subsidize an EV at the point of sale. We could be talking about incredibly generous rebates when buyers go to purchase an EV, and I think I can already sense General Motors and Tesla salivating over the news. Both automakers no longer qualify for EV tax credits from the feds after surpassing the credit threshold in 2020 and 2019, respectively, so if you buy a GM or Tesla EV, the government isn't helping these days.
We don't have any other details on how the EV rebate program may work, but they'll surely begin to trickle out as Congress debates the legislation in the weeks to come.