Manufacturers of electric vehicles are in line to receive tax credits from President Joe Biden's Build Back Better (BBB) economic initiative that will help facilitate their development over the next 10 years.
The economic plan would substantially raise the electric vehicle tax credit to $12,500 from $7,500 for people who buy an electric vehicle, according to Fox Business.
The tax credit restricts savings to vehicles produced in America and would eliminate one of the more popular EV manufacturers on the market, Tesla Motors, because they have already exceeded the IRS threshold of 200,000 vehicles sold, a goal the company met in 2018, according to Fox Business.
The Biden administration was hoping for a $100 billion subsidy for EV buyers, but relented on that provision as moderates and Republicans desired a smaller financial bill, according to CNET.
EV manufacturers had already enjoyed federal subsidies, loans and credits over the past decade with manufacturers such as Tesla, General Motors and Nissan already obtaining multi-billion dollar loans from the Department of Energy to facilitate their EV development, according to the Wall Street Journal.
The Department of Energy is hoping to make electric vehicles more desirable to consumers by granting money for battery R&D, expanding access to EV charging stations and fuel efficiency technology, according to a news release.
The U.S. directly subsidizes the fossil fuel industry at a cost of $20.5 billion per year, a sum of $14.7 billion from the federal government and $5.8 billion from states, according to the Environmental and Energy Study Institute.
