Senate approves 'Big Beautiful Bill', abolishes electric vehicle tax incentives in US
The US Congress is currently considering a bill that has sparked controversy within the clean energy sector and electric vehicle (EV) manufacturers. The bill, if passed and signed into law before 4 July, could significantly alter the landscape of the EV industry and fuel efficiency standards.
The bill in question reduces fines for non-compliance with Corporate Average Fuel Economy (CAFE) standards to nothing, effectively rendering the standards inconsequential. This move has been met with strong opposition from the clean energy sector and EV manufacturers, who argue that the bill could strand billions in investments.
The American Clean Power Association, a leading voice in the clean energy sector, has expressed concern that the bill could jeopardise the future of EV manufacturing in the US. Similarly, associations for road logistics and truckers have had a more mixed response, with some backing the bill and others, more closely associated with EV manufacturing, expressing reservations.
Henry Hanscom, senior vice-president of legislative affairs at the American Trucking Association, supports the bill. He believes it will "guarantee tax certainty for the nation's trucking companies," enabling them to better plan for the future, invest in their workforce, and equipment. On the other hand, Tesla CEO Elon Musk has a particularly strong negative reaction to the bill, calling it a "disgusting abomination."
Musk has promised to unseat lawmakers who approve the bill, but no publicly available details name specific parliament members that he has announced he will overthrow. The bill will also end EV consumer tax credits by 30 September, earlier than originally planned, a move that the automotive industry in the US has rallied against.
Despite this, OEMs may still be required to continue tracking CAFE standards. The National Automobile Dealers Association has previously requested more time to get rid of EV inventory, and it remains to be seen how the bill will impact their operations.
The bill, having passed the Senate vote, is now moving to the House for a vote. The trucking industry, which employs over 8.5 million Americans, according to Henry Hanscom, is backing the bill, while the EV manufacturing sector and clean energy sector continue to voice their opposition. The outcome of this debate could shape the future of the US's commitment to clean energy and EV adoption.
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