A new bill from the Biden Administration could mean electric vehicle (EV) buyers in the U.S. will be able to receive a $7,000 tax credit on their next Tesla purchase.
Under the Growing Renewable Energy and Efficiency Now (GREEN) Act automakers can receive the EV tax credit for up to 600,000 vehicles. That is an increase from the current 200,000 tax credit limit, each worth $7,500.
Since Tesla has already sold more than 200,000 vehicles in the U.S., the new plan would give them 400,000 more tax credits. The credit is also reduced after reaching that threshold, down to $7,000.
The bill isn’t limited to EVs, with provisions for people considering adding solar systems. The solar Investment Tax Credit (ITC) would be extended through 2025 at its current level of 30%. It would then phase out in subsequent years, 26% in 2026 and 22% in 2027, before dropping to 10% thereafter.
The GREEN Act isn’t final yet as it still needs to pass through various levels of approval. Given Democrats control all levels, it is almost a certainty the new bill will be passed and become law.