The 200,000 vehicle cap removal is a good thing as too many manufacturers have already achieved this level, and it is essentially meaningless for achieving the EV and environmental goals. The household income and vehicle price bands are good, but we must notice that very few EVs on the market today are below the established prices. Some are coming out within the new year, but very few exist today. When we reach the lower price, it is the same time as the NA content, OR free trade agreement content percentages kick in (starting in 2024). 

This content percentage is the devil in this deal. There isn’t a single car that can meet the levels required today, and considering where the raw materials come from and where they are refined, 2024 is a huge stretch. Then, each year, the content increases by 10%.

The comment from Senator Manchin is, “let’s just build mines.” If only it were that easy – we don’t have Dorothy slippers to magically build a mine, a refinery, or a recycling center. Not to mention that we must make these centers sustainable, safe, and environmentally friendly. Additionally, States/Municipalities need to figure out where to put them as most people don’t want them in “their backyard.”  

BUT, most vehicles can still obtain the smaller $3750 tax incentive, and another good point is that used vehicles can receive this tax incentive. We don’t have enough used vehicles, but this will change over the years.