See what’s clicking on FoxBusiness.com.
Sen. Ed Markey, D-Mass., promoted the controversial Inflation Reduction Act by claiming that Americans now have “no reason” not to buy electric vehicles.
At a climate change event in Boston on Monday, Markey celebrated the passage of the Senate bill that would include a tax credit worth up to $7,500 for buyers of new all-electric vehicles and hybrid plug-ins who meet certain criteria.
“It’s an incredible moment for me,” Markey said. “We’re going to say to the American people, ultimately, there’s no reason you have to pay $4 or $5 a gallon for gas when you can have an all-electric vehicle that averages 75 cents on your all-electric vehicle payment in be able to move you anywhere you want in our state or in our country.”
“And we introduced a $4,000 tax credit for used electric vehicles for the first time, so we lower the income level for those who can’t afford it because most people in our country buy used cars, not brand new cars,” he said he added.
DEMOCRATS’ INFLATION REDUCTION ACT COULD MEAN LOW WAGES FOR MILLIONS OF AMERICANS
Senator Ed Markey, a Democrat from Massachusetts, speaks during a news conference on gun safety reform outside a Smith & Wesson manufacturing facility in Springfield, Massachusetts June 3, 2022. (M. Scott Brauer/Bloomberg via Getty Images/Getty Images )
Markey’s comments caught the attention of the Republican National Committee on Thursday.
There’s a big problem with the tax credit, however, because it requires the battery that powers the electric vehicle to be manufactured, at least in part, in North America, where supply can’t keep up with demand. Under the bill, 40% of the metals used in a vehicle’s battery must come from North America for an electric vehicle buyer to qualify for full credit in 2023. By 2027, this required threshold would reach 80%.
The Alliance of Automotive Innovation, a key industry trade group, currently estimates that about 50 of the 72 electric, hydrogen or plug-in hybrid models sold in the US would not meet the requirements.
Senator Ed Markey, D-Mass., center, speaks during a press conference on the Contraceptive Right Act outside the US Capitol in Washington, DC, July 26, 2022. (Eric Lee/Bloomberg via Getty Images/Getty Images)
If the metal requirement on the invoice is not met, buyers are eligible for half of the tax credit, $3,750.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
The tax credit would only be available to couples earning $300,000 or less or singles earning $150,000 or less. And any truck or SUV with sticker prices greater than $80,000 or cars greater than $55,000 would not be eligible.
The bill passed the Senate on Sunday, with Vice President Kamala Harris casting the casting vote. It now goes to the House of Representatives for a probable vote later this week.
The Associated Press contributed to this report.