Almost all electric vehicles would qualify for the US EV tax credit with new Congress bill
You may be in luck if you’re looking to buy an electric vehicle. A new bill introduced in the Senate called the Affordable Electric Vehicles for America Act would allow essentially all EVs in the US to qualify for the $7,500 tax credit if passed.
On Friday, a few members of the US Congress, including Terri Sewell (AL), Eric Swalwell (CA), Emmanuel Cleaver (MO), and Jimmy Gomez (CA), introduced the Affordable Electric Vehicles for America Act, a new bill aimed to lower the threshold of owning an EV.
The bill would establish a phase-in period for the battery sourcing and manufacturing requirements included in the Inflation Reduction Act (IRA) passed in August.
Hyundai, in particular, has been one of several automakers that have publicly disagreed with the IRA bill’s provisions. The South Korean automaker announced in May, before the IRA was passed, that it would be building a massive $5.5 billion electric vehicle plant in Georgia.
Before the IRA bill, the Hyundai Motor Group’s EVs, such as the award-winning IONIQ5, qualified, but that will no longer be the case once the new provisions kick in at the end of the year.
Meanwhile, foreign leaders from South Korea, Japan, and the EU have lobbied for provision changes, expressing concerns over unfair competitive advantages.
Although Hyundai originally planned to begin construction in 2023, the South Korean automaker sped up its plans, breaking ground on its plant in Bryan County, Georgia, on October 25.
According to reports, Hyundai and other automakers are looking for a delay for the battery sourcing and manufacturing provisions kicking in at the end of the year to give them time to build and scale production. The Affordable Electric Vehicles for America Act would do just that.
A tax credit for all-electric vehicles in the US?
The Inflation Reduction Act is already doing its job as designed by bringing EV manufacturing jobs and investments back to the US. According to a new report, climate initiatives have added at least $40 billion in planned battery investments and over 642,000 jobs since the start of 2021.
However, many of the planned facilities and other initiatives will take time to build and become operational. For example, Hyundai will start building EVs at its Georgia facility in 2025. However, with the IRA provisions setting in at the end of the year, Hyundai EV models will still be disqualified until then.
The Affordable Electric Vehicles for America Act aims to allow automakers like Hyundai to qualify until the plant is up and running, giving them time to scale production.
Representative Cleaver explains:
Our legislation takes important steps to make the historic electric vehicle tax credits passed in the Inflation Reduction Act immediately accessible to consumers, particularly working- and middle-class Americans who would like to purchase an electric vehicle but need the federal credit to do so. As oil companies insist on continuing their exorbitant price-gouging of American families at the pump, these tax credits offer hardworking Americans immediate and significant financial assistance to help them purchase a vehicle that is better both for the environment and their wallets.
The bill would delay when the EV battery sourcing and manufacturing requirements kick in to give car buyers access to electric vehicles while still promoting manufacturing in the US.
Electrek’s Take
I like the idea of allowing foreign automakers, like Hyundai, to qualify for the tax credit, given that they already have plans set in stone to build electric vehicles in the US. The move would build upon the relationship with South Korea, a valued trade partner, while lowing the threshold for Americans to own an EV.
At the same time, I don’t believe every EV should qualify. The goal of the bill is to bring manufacturing back to the US, hence why including Hyundai makes sense.
There’s been around $85 billion in electric vehicle, battery, and charging investments since 2021. Giving these initiatives time to develop while establishing a domestic supply chain in the US will help drive EV adoption in the long run, while solidifying relationships with critical trade partners.
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Leading electric vehicle analyst, author, and industry thought leaders Loren McDonald and Bill Ferro stop by Quick Charge to discuss EV Adoption’s acquisition by Paren, the “crisis” of EV charging reliability, and the real state of the EV market.
Depending on who you listen, EVs are either driving brands to record growth and are about cross that critical 10% of the overall market nationwide, or the future is bleak, the market is down, and EVs just aren’t selling. What’s really going on? Loren and Bill (probably) have some answers.
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Read more: All my favorite EVs, racecars, and robots from Electrify Expo Austin.
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Chevy EV owners in Texas who have Reliant as their electric utility can now charge for free at night with renewable energy.
Over 150 Chevrolet dealerships across Texas are now offering the Reliant Free Charge Nights plan to new EV buyers. With Free Charge Nights, customers can offset their charging costs by receiving credits for electricity used between 11 pm and 6 am. The plan is powered entirely by renewable energy, thanks to the purchase of renewable energy certificates (RECs).
Rasesh Patel, president of NRG Consumer, says the plan is about making power personal: “We’re excited to help Chevrolet EV drivers offset the cost of charging their vehicle all while having access to a renewable electricity plan.”
This collaboration aims to make EV adoption more appealing by making charging cheaper and greener. GM Energy’s chief revenue officer, Aseem Kapur, emphasized that partnerships like this help build the ecosystem needed to support an all-electric future: “The Reliant Free Charge Nights plan is a great example of how an automaker and an energy company can work together to make EV adoption an easy decision.”
Existing Reliant customers can also sign up for the Free Charge Nights plan. To get started, Chevrolet EV owners need to designate their vehicle on the GM Energy Smart Charging Portal before enrolling in the plan.
Reliant Energy, a subsidiary of NRG Energy, serves over 1.5 million customers in Texas, making it one of the largest electricity providers in the state.
Read more: Texas to get 1 GW AI-powered virtual power plant, enough to power 200,000 homes
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Texas is about to get a major power boost – a new AI-powered virtual power plant (VPP) delivering capacity equivalent to 200,000 homes during peak demand.
NRG Energy is teaming up with Renew Home to bring nearly 1 gigawatt (GW) of capacity to the Texas grid by 2035, aiming to make it more resilient while helping residents save on energy costs.
The new VPP will rely on hundreds of thousands of smart thermostats and other connected home devices, making use of AI technology provided by Google Cloud. These devices, like Vivint and Nest smart thermostats, will be offered to eligible customers at no cost. By automating HVAC adjustments, they help shift energy use to when electricity is cheaper, cleaner, and less strained.
NRG and Renew Home have big plans for the VPP. Starting in spring 2025, the companies plan to roll out the program across Texas, installing these smart thermostats in homes served by NRG’s retail electricity providers. Eventually, they plan to add home battery storage and EVs to expand the power plant’s capabilities.
Texas has faced record-breaking energy demands, with peak usage hitting 85 GW in 2023. As the state’s population grows and extreme weather becomes more frequent, VPPs like this one could play a key role in stabilizing the grid. VPPs aggregate a lot of small-scale energy resources, from smart thermostats to home batteries, and use them to help balance supply and demand during times of high stress on the grid.
This nearly 1 GW VPP will be one of the largest of its kind in Texas. NRG’s president of consumer operations, Rasesh Patel, calls it a “pivotal step” for improving customer experience while making Texas’ energy infrastructure more sustainable and resilient.
In addition to Renew Home, NRG is working with Google Cloud to maximize the power plant’s effectiveness. Google Cloud’s AI and analytics tools will help predict weather conditions, forecast renewable generation, and optimize energy usage, all of which will help make energy management smoother for both customers and the grid.
Ben Brown, CEO of Renew Home, said:
NRG’s commitment to creating a more resilient and sustainable energy future while also making electricity bills more affordable makes them an ideal partner for co-developing this unique VPP program.
This initiative raises the bar for future-proofing our electricity infrastructure and delivering cost savings to customers.
Read: Chinese solar giant Trina sells its Texas factory a week after it opens
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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
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