Could the climate bill help you nab an EV?

Electric vehicles can save drivers money in the long run, but adoption is hindered by high costs (~$66k on average in the US) and short supply.

A new climate bill, passed by the Senate and expected to clear the House this week, could help — or make things harder, Axios reports.

How it works

The bill includes $370B+ in climate and energy-focused spending and tax incentives. Some relevant provisions for EV buyers and producers include:

• $7.5k in tax rebates when buying US-made EVs (up to $4k for used EVs)
• $2B in grants to revamp auto manufacturing facilities for clean vehicle production
• $20B in loans to build manufacturing facilities for clean tech

But getting that tax rebate…

… could be tough. To meet eligibility, a vehicle’s battery must have:

• ~40% of its components made in North America or by a US trade partner by 2024
• 100% of its components made in North America by 2029

This is a problem, because the EV battery supply chain in the US is underdeveloped. Currently, only ~30% of EVs in the US qualify for the tax credit, and none meet the qualifications for 2029.

Some experts believe the bill would be more climate-friendly if the tax credits applied to all EVs.