Ford – along with most other automakers – has been pushing for new EV tax credits for some time now, a call that seems more urgent as the automaker approaches the current cap of having sold 200,000 units, which it expects to reach by the end of this year or early next year. Lawmakers have been debating this topic for months as well, and now, the U.S. Senate has concocted a new bill that will reform the existing $7,500 tax credit and keep Ford EVs – along with other automakers at or over the current cap – eligible for tax credits through the end of 2032, according to Reuters.
This new bill is part of the Inflation Reduction Act of 2022, or the Democrat’s “reconciliation bill,” and comes about as a joint effort between Senate Majority Leader Chuck Schumer and Democratic Senator Joe Manchin. The bill calls for an expansion of the existing $7,500 tax credit, as well as $10 billion set aside for clean-technology manufacturing facilities, a $4,000 tax credit for used EVs, $2 billion to retool existing plants for the production of EVs, $1 billion for schools and government entities to purchase heavy-duty vehicles, and $3 billion for USPS as it aims to convert to EVs as well.
If the bill becomes law – it must pass through the Senate next week and then the House before it can be signed off on by President Joe Biden – it will also provide $20 billion in loans for new clean energy manufacturing facilities, as well as $30 billion in tax credits “to accelerate U.S. manufacturing of solar panels, wind turbines, batteries, and critical minerals processing.”
Though the full details of this bill haven’t been released yet, there are some caveats worth noting. Only cars priced under $55,000 and SUVs, trucks, and vans that cost less than $80,000 are eligible, while the credits are limited to families that have adjusted gross incomes of up to $300,000 annually.