, and plans to bring in stricter pollution and gas mileage requirements, has created some confusion.
Does our government want us to buy electric vehicles or not? Read on to find out what this amendment means for the future of electric cars, and why it was proposed in the first place.
What does the amendment say?
As it stands, taxpayers qualify for a federal tax credit of up to $7,500 if they are one of the first 200,000 individuals to buy an electric vehicle from any given automaker.
Tesla and GM have already surpassed this sales milestone, but all other makes of electric cars are still eligible.
Last month, Nebraska’s Republican Senator Deb Fischer introduced a non-binding amendment to the budget, that would limit the tax credit to individuals who earn less than $100,000 per year, and to electric vehicles which cost less than $40,000.
, the amendment passed by 51 votes to 48. The vote was largely split along party lines, although three Democrats supported it, while Republican Senator Marsha Blackburn of Tennessee voted against the amendment.
Blackburn was no doubt influenced by the fact that Nissan and VW both manufacture EVs in her state, and a $2.3 billion battery cell factory is planned there too.
Shortly after the resolution passed, Senator Fischer tweeted "everyday Americans are living paycheck to paycheck because of the sharp rise in costs due to #Bideninflation. We shouldn't be subsidizing luxury vehicles for the rich using money from hard-working taxpayers."
This suggests she was motivated by the desire to help ordinary Americans (™), by stopping frivolous spending of their tax dollars, or by coercing electric car makers to bring prices down below the $40,000 cap.
Critics however, have called it a PR stunt to keep the "Biden Inflation" talking point going, and further inflame her rural base against left-leaning coastal areas, several of which are planning on
"Alex Healey is an insurance writer specializing in car insurance and personal finance. Alex’s mission is to create informative, just-in-time content for car owners and buyers. Alex has written articles for Jerry on topics ranging from hybrid vehicle rankings to used car costs. Before joining Jerry, Alex worked as a digital content specialist and editor for brands including InsuranceHotline.com, Rates.ca, and Booking.com. When not writing for Jerry, Alex continues to build his freelance digital content portfolio in the insurance and automotive industries. "