Could more Tax credits and incentives start soon?

[trutolife27]

Biden to tell U.S. agencies to review fuel efficiency standards, overturning Trump

Detroit — On his first day as president, Joe Biden is set to order U.S. agencies on Wednesday to review fuel efficiency standards, according to the president's transition team.
The executive order, which Biden is expected to sign Wednesday evening, will direct agency heads to review dozens of Trump-era rules that would affect public health and the environment — including fuel economy standards that impact all global automakers selling vehicles in the United States.

Last year, President Donald Trump's administration reduced the required annual fleetwide mpg for 2021-26 vehicles from the original 5% established under the Obama administration to a less-stringent 1.5%. Under the new requirements, automakers were required to achieve a fleetwide average of 40.4 mpg by 2026 down from an average of 46.7 mpg by 2025 that was previously mandated.
Biden is likely to roll back changes made under Trump and institute more stringent fuel economy standards akin to the Obama standard. The new president is expected to be more proactive toward realizing the all-electric future envisioned by major automakers, saying that he wants to see 500,000 charging stations installed to support the transition to EVs.

The administration also is likely to drop the Trump administration's rule arguing that California can't set its own greenhouse gas and mileage standards. Environmental groups sued the former administration over the rule, creating a schism in the industry.
Some automakers — including Fiat Chrysler Automobiles NV (now Stellantis NV), Toyota Motor Corp. and General Motors Co. — sided with Trump. Ford Motor Co., Honda Motor Co. and Volkswagen AG, among others, sided with California and dozen or so other states that typically follow the Golden State's lead.

Both camps argued their strategy was more likely to result in a single standard for the industry. The main driver: to avoid differing regional standards that essentially would require automakers to engineer and build different versions of the same vehicles, driving costs higher and increasing manufacturing complexity.
California is the most progressive state when it comes to fuel emissions standards, Under the 1970s-era Clean Air Act, it has long possessed the ability to enact more stringent rules than the federal standard due to geographic issues with smog and other pollutants. The state wants all new vehicle sales to be electric by 2035.
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GM abruptly dropped out of the lawsuit in late November in an acknowledgement that the new administration likely would drop the fight against California, saying its electrification goals align more closely with Biden's aggressive zero emissions plans.
The move took the industry by surprise — especially Toyota and FCA, which had privately agreed with GM to reassess their position after Trump's loss and the prospect of radical change in White House climate policy-making.

In a statement congratulating Biden and Vice President Kamala Harris, GM CEO Mary Barra said: “At General Motors we look forward to working together with the new administration on the issues that unite us. As a nation we are stronger together.”
While the industry has not met federal fuel economy standards since 2015, more stringent regulations are expected to be a challenge. However, automakers and investors agree that electric vehicles are likely to be the future of the industry and have invested billions in the next-generation technology. They've also asked the federal government for regulatory and financial help to get there.
The Alliance for Automotive Innovation, an advocacy group representing major automakers selling vehicles in the U.S., released a statement saying the industry is committed to working with the new administration to reduce emissions and hasten a future rife with electric vehicles.
"We recognize that regulation and policy will help set the terms for that future and that near-term regulatory issues will need to be resolved in a way that benefits the environment, the workforce, and our economy," CEO John Bozzella said. "We congratulate President Biden, Vice President Harris and the incoming administration on this important day and stand ready to work together to address key issues facing our country.”

 

[SnBGC]

Good. Let's get this party started!

 

[UW2]

Biden to tell U.S. agencies to review fuel efficiency standards, overturning Trump

Detroit — On his first day as president, Joe Biden is set to order U.S. agencies on Wednesday to review fuel efficiency standards, according to the president's transition team.
The executive order, which Biden is expected to sign Wednesday evening, will direct agency heads to review dozens of Trump-era rules that would affect public health and the environment — including fuel economy standards that impact all global automakers selling vehicles in the United States.

Last year, President Donald Trump's administration reduced the required annual fleetwide mpg for 2021-26 vehicles from the original 5% established under the Obama administration to a less-stringent 1.5%. Under the new requirements, automakers were required to achieve a fleetwide average of 40.4 mpg by 2026 down from an average of 46.7 mpg by 2025 that was previously mandated.
Biden is likely to roll back changes made under Trump and institute more stringent fuel economy standards akin to the Obama standard. The new president is expected to be more proactive toward realizing the all-electric future envisioned by major automakers, saying that he wants to see 500,000 charging stations installed to support the transition to EVs.

The administration also is likely to drop the Trump administration's rule arguing that California can't set its own greenhouse gas and mileage standards. Environmental groups sued the former administration over the rule, creating a schism in the industry.
Some automakers — including Fiat Chrysler Automobiles NV (now Stellantis NV), Toyota Motor Corp. and General Motors Co. — sided with Trump. Ford Motor Co., Honda Motor Co. and Volkswagen AG, among others, sided with California and dozen or so other states that typically follow the Golden State's lead.

Both camps argued their strategy was more likely to result in a single standard for the industry. The main driver: to avoid differing regional standards that essentially would require automakers to engineer and build different versions of the same vehicles, driving costs higher and increasing manufacturing complexity.
California is the most progressive state when it comes to fuel emissions standards, Under the 1970s-era Clean Air Act, it has long possessed the ability to enact more stringent rules than the federal standard due to geographic issues with smog and other pollutants. The state wants all new vehicle sales to be electric by 2035.
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Fuel your hometown passion and plug into the stories that define it.
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GM abruptly dropped out of the lawsuit in late November in an acknowledgement that the new administration likely would drop the fight against California, saying its electrification goals align more closely with Biden's aggressive zero emissions plans.
The move took the industry by surprise — especially Toyota and FCA, which had privately agreed with GM to reassess their position after Trump's loss and the prospect of radical change in White House climate policy-making.

In a statement congratulating Biden and Vice President Kamala Harris, GM CEO Mary Barra said: “At General Motors we look forward to working together with the new administration on the issues that unite us. As a nation we are stronger together.”
While the industry has not met federal fuel economy standards since 2015, more stringent regulations are expected to be a challenge. However, automakers and investors agree that electric vehicles are likely to be the future of the industry and have invested billions in the next-generation technology. They've also asked the federal government for regulatory and financial help to get there.
The Alliance for Automotive Innovation, an advocacy group representing major automakers selling vehicles in the U.S., released a statement saying the industry is committed to working with the new administration to reduce emissions and hasten a future rife with electric vehicles.
"We recognize that regulation and policy will help set the terms for that future and that near-term regulatory issues will need to be resolved in a way that benefits the environment, the workforce, and our economy," CEO John Bozzella said. "We congratulate President Biden, Vice President Harris and the incoming administration on this important day and stand ready to work together to address key issues facing our country.”

Having uniform standards across most states and the Feds to provide income based incentives to make EVs truly affordable for middle income Americans would turbo charge the industry. Tesla would be a big winner, so this could become bipartisan.

 

[mattsaradan]

I don't think that's about more tax credits. Honestly there is bipartisan opposition to the EV incentive, any effort to make it more generous is as likely to lead to its repeal. This is about fuel economy standards I think and reinstating the standards set by the Bush and Obama administrations, which the Trump administration sought to undermine.

 

[eltonlin]

I do think it was great that Ford was able to stick to a position and not have to flip-flop. Good leadership there.

 

[timbop]

I don't think that's about more tax credits. Honestly there is bipartisan opposition to the EV incentive, any effort to make it more generous is as likely to lead to its repeal. This is about fuel economy standards I think and reinstating the standards set by the Bush and Obama administrations, which the Trump administration sought to undermine.

Actually, there was bipartisan support in congress in 2019 to extend a $7000 rebate to 600,000 cars for US automakers. It got nixed by the administration with the threat to remove it altogether. If it were to be limited to US companies, that would be about 1.7M cars (400k each for tesla and GM, 450k for ford, and 500k for stellantis). At $7000 that's about $13B, less than half the initial lowball number for the border wall.

 

[Fredo]

Actually, there was bipartisan support in congress in 2019 to extend a $7000 rebate to 600,000 cars for US automakers. It got nixed by the administration with the threat to remove it altogether. If it were to be limited to US companies, that would be about 1.7M cars (400k each for tesla and GM, 450k for ford, and 500k for stellantis). At $7000 that's about $13B, less than half the initial lowball number for the border wall.

I almost forget the WALL~~~~
I agree with UW2 that we need EV to be a more affordable commodity to provide our nation and our auto makers a better future.

 

[malba2366]

Actually, there was bipartisan support in congress in 2019 to extend a $7000 rebate to 600,000 cars for US automakers. It got nixed by the administration with the threat to remove it altogether. If it were to be limited to US companies, that would be about 1.7M cars (400k each for tesla and GM, 450k for ford, and 500k for stellantis). At $7000 that's about $13B, less than half the initial lowball number for the border wall.

Limiting it to US based manufacturers would invite a WTO complaint. Also would exclude Chrysler products which would then send the UAW up in arms. The only thing they could do is limit it to US manufactured vehicles, which would exclude the Mach E, so let’s hope they don’t do down that road.

 

[DBC]

Honestly there is bipartisan opposition to the EV incentive, any effort to make it more generous is as likely to lead to its repeal.

As @timbop says, you have this backwards. There is strong bi-partisian support for extending and increasing the credits. If you want to understand why, just remember that electric vehicles will be made in Red states like Tennessee and South Carolina.

Personally I'm not a fan of credits since they discriminate against lower income workers, but GM came up with the idea when battery electric vehicles were going to be expensive and the approach has stuck. Zero chance of a repeal at this point.

 

[trutolife27]

I almost forget the WALL~~~~
I agree with UW2 that we need EV to be a more affordable commodity to provide our nation and our auto makers a better future.

What we need to do, and that goes for all of us. It helps people understand the EV movement. Take them for a ride in the mache let them drive it. Explain the charging range all things related. The more we can get the info out the quicker the movement would be.

My nephew was one me about switching to Ev powered lawn and garden. Since I did will never look back.

If we can each help a little amount it will add up in the EV market.

 

[ab13]

Personally I'm not a fan of credits since they discriminate against lower income workers, but GM came up with the idea when battery electric vehicles were going to be expensive and the approach has stuck. Zero chance of a repeal at this point.

Why not include more credits to lower income and limits to higher income.

 

[timbop]

Why not include more credits to lower income and limits to higher income.

That is on the table as well. I'm going to guess that this is an area where a bipartisan consensus can be reached.

As @trutolife27 said, it is imperative for humanity as a whole to stop releasing ancient trapped carbon

 

[mattsaradan]

I haven't been in a policy shop since 2018, so that's terrific to see if there was progress made in the last year or so - I'm all for all of the strategies suggested (we launched a number of "Ride and Drives" for public officials - local, state, and federal). At the time, we were trying to get support to extend the EV credit and replace unit caps with MSRP caps. In addition to a hostile administration, we found Republicans on the whole saw EV's as "green" and were not interested and Democrats on the whole saw the tax credit as a giveaway to the rich and were not interested. To be sure, there was even then a bi-partisan coalition in support - Republicans who saw geopolitical threats from oil dependence and opportunity for US manufacturing and Democrats who understood the credit leveraged private money to accelerate alternative fuels. But it was only just barely enough to guard the status quo.

 

[GoGoGadgetMachE]

Why not include more credits to lower income and limits to higher income.

yes this is fair - it's an accurate criticism that for the most part, higher-income earners are the folks that saw the benefits from tax credits for a long time, both because they had enough income to pay for the cars and enough tax to get the full offset. Lower-income folks don't hit either bullet point.

as I said in another thread, for an EV to be viable for a lower-income person, it needs to be priced much lower than we're used to for EVs - you're competing against brand-new cars on the lot under $20K and a TON of "good enough" used ICE vehicles under $20K and even under $10K. It's a basic money play.

and by the way, while we're talking about this, income tax credits really are not any good for lower-income because it's a delayed thing (no, a "normal" working-class person is never going to sort out "adjust your withholding" and it's ridiculous to suggest that). it's got to be something that's point-of-sale or it's useless to someone at that income level.

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