Over the last month, EV Tax Credits have resurfaced as a topic of discussion in congress. As Joe Manchin and Chuck Schumer have been in detailed discussions over the last four weeks, it appears we are finally getting closure on the topic once and for all.
Build Back Better was ultimately shot down at the end of 2021, and with it, the EV tax credits we were all anticipating. There was a slight glimmer of hope at the beginning of the year, but it has been quiet ever since.
With rising inflation and interest rates on the rise, it appears that Democrats are now motivated more than ever to get something passed before the mid-term elections. Previously, Democrats were standing firm in their respective positions and not willing to budge. Because of this, ultimately BBB failed.
It appears that after numerous discussions and deep negotiations between Chuck Schumer and Joe Manchin, all climate priorities in the bill have been killed. Joe Manchin will not support any spending on priorities while inflation is as high as it is right now. The only spending Joe Manchin seems to have an appetite for at this moment is on Medical benefits.
So this is obviously a major set back for the progress being made on EV tax credits, and although Joe Manchin said he would revisit and consider when inflation comes back down, that will not be until after crucial mid term elections, in which Democrats may very well lose the power they now have in both chambers.
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