New Law for Electric Cars

For many families, electric cars are an attractive option, but the barriers keep them out of reach. New electric cars cost between $25,000 and $180,000. Price markups at dealerships due to car shortages and high demand have also increased the cost of some electric cars by more than $10,000, sometimes as much as $15,000. Drivers of fully electric battery vehicles are already saving money on operation and maintenance compared to cars with combustion engines. That`s the result of cheaper fuel — charging at home costs about half as much as gasoline for the same number of miles driven — and battery electric vehicles can save drivers 40% on maintenance costs. California will revolutionize the auto market by ending sales of new gasoline-powered cars within 12 years and forcing car buyers to switch to electric cars. WASHINGTON/DETROIT, 8. December (Reuters) – The U.S. government plans to end purchases of gasoline-powered vehicles by 2035 to reduce emissions and promote electric cars under an executive order signed by President Joe Biden on Wednesday. Air Commission officials predict that the cost of an electric car will match the price of a gasoline-powered car as early as 2030, as inventories rise to fulfill the mandate.

Some of the changes made by the Reducing Inflation Act to the Electric Vehicle Tax Credit to encourage the use of “clean” vehicles could be seen by industry manufacturers as a mix of good and not so good news. And there are a few questions about how electric vehicle tax credits will work for the rest of 2022. But other changes to the electric vehicle tax credit in the Anti-Inflation Act may be welcomed by some consumers – like you. The order stated that the U.S. government is “the nation`s largest landowner, energy consumer and employer” and can “change the way we build, buy, and manage electricity, vehicles, buildings, and other businesses to be clean and sustainable.” Dan Becker, director of the Safe Climate Transport campaign at the Center for Biodiversity, said Biden should act faster. “Waiting 14 years for this is a terribly long period when we already have electric vehicles and companies are now trying to decide whether they`re just making promises or actually making electric vehicles,” Becker said. The regulation is the first in the world to end the sale of conventional gasoline-powered vehicles and boost sales of electric cars. A small number of other states and nations have set themselves only voluntary targets.

Under the mandate, electric cars must have a range of at least 150 miles on a single charge. Batteries must be more durable and have a manufacturer`s warranty. At least 80% of the original range must be maintained over a 10-year period, starting in 2030, one year earlier than originally proposed. Price and vehicle type also play a role. Vans, pickup trucks and SUVs with a suggested retail price (MSRP) greater than $80,000 are not eligible for the credit. For clean cars to qualify for the electric vehicle tax credit, the MSRP cannot exceed $55,000. The federal government`s overall actions will reduce emissions by 65% by 2030 as part of the plan. The government will aim to consume net annual electricity from carbon-free and environmentally responsible sources only by 2030 and to have net-zero emissions by 2050. The regulation offers several advantages that increase from year to year.

By 2030, 2.9 million fewer new gasoline vehicles will be sold, and by 2035, there will be 9.5 million fewer conventional vehicles. In 2040, greenhouse gas emissions from cars, vans and SUVs will be halved, and from 2026 to 2040, the regulation will reduce pollution from these vehicles by a total of 395 million tonnes. This is equivalent to avoiding the greenhouse gases produced by burning 915 million barrels of oil. New gasoline-powered cars will be banned in California starting with 2035 models under groundbreaking new regulations passed unanimously today to force car owners to switch to zero-emission vehicles. By the 2030 model year, the rules require the vehicle to maintain at least 80 percent of the electric range for 10 years, or 150,000 miles. (Phased in by 70% for model year 2026 to 2029 vehicles.) By the 2031 model year, individual vehicle batteries must conserve 75% of their energy for eight years, or 100,000 miles. (70% incremental increase for model years 2026 to 2030.) ZEV powertrain components come with a warranty of at least three years or 50,000 miles. The Reducing Inflation Act — a multibillion-dollar tax, climate, health and energy bill — makes major changes to electric vehicle tax credits — some affecting the rest of 2022. Speaking of limits, before the Reducing Inflation Act, manufacturers producing more than 200,000 electric vehicles could not qualify for the electric vehicle tax credit because it expired once the manufacturer reached the 200,000-car cap. The Reduced Inflation Act lifts this cap, which means that some cars from automakers that have surpassed the 200,000 mark (for example, General Motors, Toyota and Tesla), are now eligible to claim the credit. Biden wants Congress to approve up to $12,500 in tax credits for electric vehicle purchases, including $4,500 for buyers of electric vehicles made in the Union, but that has met resistance from foreign automakers. What if I purchased an electric vehicle between January 1 and August 16, 2022? Biden launched a plan in August to make half of all new U.S.

vehicles electric by 2030. These included plug-in hybrid electric models that also have gasoline engines. Battery and fuel cell electric vehicles require a minimum range of 150 miles to qualify for the program, offer fast charging capability, and are equipped with a charging cable for easy charging and meeting new warranty and durability requirements. Government subsidy programs designed to help low- and middle-income people buy electric cars have repeatedly suffered from inconsistent and inadequate funding. Meanwhile, automakers said the industry is already facing global supply chain disruptions, battery shortages and other constraints. The proposal was first presented in April. In response to concerns from several council members, staff today made minor changes to address issues related to the durability of electric car batteries and added provisions to improve support for low-income residents. Critics say the state needs more charging stations as sales of electric cars rise. California has about 80,000 stations in public places, ranking among the nearly 1.2 million public charging stations needed by 2030 to meet the demand for the 7.5 million electric cars expected to be on California roads.