Biden proposes $ 174 billion investment in electric vehicles

President Joe Biden has unveiled a preview of his infrastructure plan, and it includes a proposed $ 174 billion investment in electric vehicles.

The Biden administration posted an overview of its infrastructure plan on its website.

It includes an investment of 174 billion dollars in electric vehicles which they summarize:

“Create good jobs by electrifying vehicles. The US market share of plug-in electric vehicle (EV) sales is only a third of the size of the Chinese EV market. The president believes that must change. It proposes an investment of 174 billion dollars to conquer the market for electric vehicles. His plan will allow automakers to boost national supply chains from raw materials to parts, retool factories to be globally competitive, and help American workers make batteries and electric vehicles. It will offer consumers point-of-sale discounts and tax incentives to purchase electric vehicles made in the United States, while ensuring that these vehicles are affordable for all families and made by workers with good jobs. It will establish grant and incentive programs for state and local governments and the private sector to build a nationwide network of 500,000 EV chargers by 2030, while promoting strong labor standards. work, training and installation. His plan will also replace 50,000 diesel transit vehicles and electrify at least 20% of our yellow school bus fleet through a new Clean Buses for Children program at the Environmental Protection Agency. , with the support of the Ministry of Energy. These investments will put us on the path to the 100% clean bus, while ensuring that the U.S. workforce is trained to operate and maintain this 21st century infrastructure. Finally, it will use the vast tools of federal procurement to electrify the federal fleet, including the United States Postal Service. “

Without going into details, the investment will include funds to help automakers secure materials for electric vehicle production and plant conversion.

The announcement confirms that the initiative will also revamp the incentive for consumers to buy electric vehicles.

Once again, without going into specifics, we have confirmation that it will not only be a tax credit, but that it will also be available at the point of sale, which will facilitate sales.

The summary also confirms that this incentive will only apply to “American-made” electric vehicles.

Recently, Democrats introduced several new pieces of legislation to reform tax incentives for electric vehicles and one of them, the GREEN law, included a point-of-sale aspect.

The announcement also confirms that part of the $ 174 billion investment will go to charging infrastructure and electric transit vehicles, such as school buses.

Taking Electrek

Before all the free market capitalists decide to go into the comments to say that the government should not subsidize anything, you have to remember that the free market does not take into account the impact of emissions on the environment, l air and water.

These issues have a real financial cost that free markets ignore.

It would be fairer to put in place a carbon tax to account for this cost than to put in place these incentives for clean technologies, but it is even more difficult to do politically.

Funny enough, more often than not the same free market people who are against these incentives are also against a carbon tax, which is actually about making the free market fair.

So far, this is the best we’ve gotten and should be enough to dramatically accelerate the adoption of EVs in the United States.

What do you think? Let us know in the comment section below.

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