The Inflation Reduction Act is a landmark step towards fighting climate change, but to meet California’s climate and zero-emission vehicle (ZEV) goals, we must pair it with Prop 30 — the Clean Air Initiative.
1. The New York Times reports that despite the financial incentives included in the Inflation Reduction Act, electric vehicles will remain inaccessible for most Americans.
- The new tax credits apply to only “a narrow slice” of electric vehicles.
- Battery and raw material shortages have driven electric vehicle prices up as demand has increased, giving automakers little incentive to decrease prices.
2. Also this: Axios reveals the significant remaining barriers to widespread electric vehicle adoption.
- The average cost of an electric vehicle is almost $67,000, but the Inflation Reduction Act’s price limit on qualifying sedans is $55,000.
3. CleanTechnica outlines the new limitations the IRA imposes on rebates for electric vehicles.
- To qualify for any rebate, the electric vehicle must:
- be manufactured in North America
- contain components or materials sourced from the US or countries the US has a free trade agreement with, or that have been recycled in North America
- Cost under $55,000 for sedans and wagons and $80,000 for SUVs
- The upshot: 20 electric vehicles that currently qualify for a tax rebate will no longer qualify as of January 1, 2023.
Prop 30 provides $45 B in subsidies for ZEVs over the next 20 years. Working in tandem with the IRA, it will put millions of ZEVs on our roads.
The Clean Air California coalition supporting Prop 30 has experts on California wildfires, public health, air quality, environmental justice, and climate change available to speak with the press. Contact Deborah Camiel at 818-299-3656 or email@example.com.
For more on Prop 30, go to YESon30.