Public Tax Support Electric Vehicle Tax | The Controlled Review

The American public would like to open up electric vehicle tax credits to cars manufactured anywhere.

It is possible that the US House of Representatives will revisit this year some important parts of the laws that were passed last year. One of the issues that should be reviewed by the US Congress is the family tracking requirements and other restrictions on electric vehicle (EV) taxes under the Inflation Reduction Act (IRA).

We advice these restrictions on incentives within the IRA do not reflect US public opinion or world political opinion. They have it be a major area of ​​conflict between the United States and its allies in Europe and Asia. When President Emmanuel Macron visited the United States last month, for example, he raise this issue with President Joseph R. Biden.

This is our research suggested American public support for EVs does not depend on the nation’s economy or similar concerns. But, the US in general love accelerate technology adoption by making the EV tax credit available to everyone.

Indeed, the IRA took important steps forward for war policy. He is kind money several pricing plans, including providing a $7,500 tax credit for EV purchases. It also corrects a major problem with the current EV credit system. increase the production shutdown, which restricted credit after manufacturers sold more than 200,000 vehicles in North America. For details, Tesla sold about 360,000 cars in 2021 alone.

The number of sales for EVs is increasing. California, Washington, and New York are present legally binding legislation requiring that vehicles sold in these states be EVs or plug-in hybrids by 2035—and many other states may follow their lead. In the face of these state laws, the first cap of 200,000 will severely limit the availability of EV tax credits, thus hindering the dissolution of the transport sector. In California itself, about 1.8 million new cars were sold in 2021.

While IRAs appreciate limited sales, they limit EV investments in other ways. In response to concerns that EV credits benefit the wealthy, for example, the current IRA limits These debts are for families under $300,000 and for single filers under $150,000. Loans are also limited to cars under $55,000 as well as SUVs, vans, or cars under $80,000.

In addition, due to China’s control of the EV supply chain, and the insistence of US Senator Joe Manchin (DW. Va.) that the US should protect its own manufacturers, the IRA. limits tax credit on U.S. motor vehicles whose precious stone minerals are extracted, processed, or recycled within the country or countries of have trade agreements, such as Chile and Australia. By 2023, manufacturers must source 40 percent of the precious minerals of the car battery in the country or under trade agreements, and, by 2026, should be obtained from 80 percent.

The program exists written angry reaction from US allies in Asia and Europe look the United States for discriminating against foreign cars and violating the rules of the World Trade Organization. Sponsored IRAs, however, advice The tax credits reflect similar concerns and will help American automakers regain global competitiveness and create domestic jobs.

In recent months, many car companies try to find a way to get around the IRA’s instructions on how to use the EV savings. In the House of Representatives, MPs expressed the Electric Vehicle Regulations for America, which will allow for a tax credit for all EVs. However, what seems to be missing in the IRA debate is the opinion of US consumers about who should be eligible for the EV tax credit.

In the near future storywe argue the American public does not support limiting who should be eligible for EV licenses. Using a primary research method, we found limiting eligibility for incentives to US automakers or vehicles made in the United States has no effect on support for the policy. This result held even if we primed the respondents with economic motivation, as an argument that the motivation of the EVs may benefit foreign companies more than domestic companies.

We are too found the stimulated receptors need to drive EVs widely. Respondents do not support income or vehicle price regulation. In this regard, the IRA may conflict with public opinion about public policy favoring certain forms of redistribution.

We did at the same time the research in Japan where subsidies for companies in the country are a fundamental part of the business process, and we found this is the same type of support for the general tax credit policy.

The attack on Ukraine and the reduction of production by the Organization of the Petroleum Exporting Countries (OPEC) are focusing policies on energy security. Although some argue for policies to improve oil and gas production in the country, etc. emphasis achieve energy security by reducing demand for fossil fuels rather than increasing supply. Demand reductions depend, in part, on the rapid shift of the transportation sector from internal combustion engine vehicles to EVs. So, in addition to running into chaos and public opinion that is love EV tax credits are available to everyone, limiting who can use them EV credits can slow the transition to light transport sector.

OPEC’s decision last fall to cut back oil production, and the resulting rise in gas prices at that time, emphasis the vulnerability of the US transportation sector to global events—suggests another reason to accelerate the decarbonization of the transportation sector. To achieve rapid change, it is important to design a policy package that can garner broad public support. This is our research suggested that is, at least for EV tax credits, public support is not affected by equity concerns or the economy. Instead, the US public is interested in the rapid adoption of technology by making tax breaks available to everyone.

Sijeong Lim is an associate professor at Korea University.

Nives Dolšak is the Stan and Alta Barer Professor of Sustainability Science at the University of Washington.

Aseem Prakash is the Walker Family Professor for Arts and Sciences at the University of Washington.

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Seiki Tanaka is an associate professor at the University of Groningen.

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