The following editorial originally appeared in the Los Angeles Times:
Expanded electric car subsidies were supposed to be a centerpiece of President Joe Biden’s signature climate law, accelerating emissions reductions by allowing buyers to claim generous tax credits and save thousands of dollars on a plug-in vehicle.
But in reality they’re looking pretty stingy. The Biden administration last week announced vehicle models eligible for federal tax credits, and only 11 of more than 90 electric vehicles on the market today qualify for the full $7,500 tax credit. Of those, two are not fully electric, but plug-in hybrids with a battery-only range of 21 to 32 miles. An additional seven vehicles qualify only for a half-credit of $3,750.
That’s an embarrassingly short list for a law Biden has touted as bold, transformative and “the biggest step forward on climate ever.” And it’s bad news for consumers who might prefer other EV models and for the environment because it blunts efforts to cut vehicle pollution fast enough to prevent catastrophic climate change.
The paltry selection of eligible vehicles is due to restrictions included in the Inflation Reduction Act to win the support of Sen. Joe Manchin III, D-W.Va., and to encourage domestic manufacturing and reduce reliance on China, which produces most of the world’s EV batteries. To qualify for the tax credit, vehicles must be assembled in North America and built with specific percentages of battery parts and critical minerals from the U.S. or countries with which it has a free trade agreement.