TL;DR: EV cars & SUVs will face an average 16% effective price increase, with the lowest cost model up more than 28%, if the law passes the Senate and goes into effect as written.
It’s hard to imagine any way this doesn’t throw a huge wrench into the adoption of sustainable car technology for the USA.
Only about 8% of new cars sold last year in the USA were electric, compared to 13% for the EU or 25% for China. Seems like exactly the wrong moment to cut tax incentives for the tech.
The tax credits are just a money grab for the manufacturers and dealers. If you do the math, a 68k loan with a 6-7% interest rate and the $7500 tax credit has the same total cost as no tax credit and a 0.99% rate. That’s why they always offer “manufacturer incentives” with $0 due at signing or those 0-2% loans, but almost never both.
It really depends on if you have good credit or not to make the tax credit a good deal.