DETROIT - The surprise deal by Senate Democrats on a slimmed-down bill to support families, boost infrastructure and fight climate change also is likely to jump-start sales of electric vehicles.The measure agreed to by Senate Majority Leader Chuck Schumer and holdout Sen. Joe Manchin of West Virginia would give EV buyers a $7,500 tax credit starting next year, through the end of 2032.
There’s also a new $4,000 credit for those buying used EVs, a move to help the middle class go electric.But as things often go in Washington, there are a bunch of strings and asterisks.RELATED: What's in, and out, of Democrats' climate, health care and inflation billTo be eligible, the electric vehicle has to be assembled in North America, and there are limits on annual income for buyers. There also are caps on the sticker prices of new EVs — $80,000 for pickups, SUVs and vans, and $55,000 for other vehicles — and a $25,000 limit on the price of used electric vehicles.Still, even with the restrictions, the credits should help stimulate electric vehicle sales, which already are rising as automakers introduce more models in different sizes and price ranges, said Jessica Caldwell, an analyst for Edmunds.com."The tax credits for electric vehicles in the bill will benefit consumers and cut costs for low- and middle-income families," the Sierra Club said of the measure, which still must be approved by both chambers.
"We're hoping for swift adoption."FILE - Sen. Roger Wicker (R-MS) ranking member on the Senate Committee on Commerce, Science and Transportation, gets in to take a test drive of a Lucid Motors electric car parked outside the Dirksen Senate Office Building on Capitol Hill on Wednesday RELATED:Ford reveals new electric F-150 police
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