Opinion | Feds should make climate-friendly EVs more affordable - The Capital Times

Opinion | Feds should make climate-friendly EVs more affordable | Guest Columns | captimes.com

I’m a physician practicing medicine in the Milwaukee area. Currently, I’m driving a high-mileage car that is in need of replacement, and I strongly want to purchase an electric vehicle because of the impact a gasoline car has on the environment.

As a provider, I see how poor air quality exacerbates my patients’ asthma. Despite my strong desire to purchase an electric vehicle, it has to make financial sense. That’s why I urge President Biden's administration to make buying electric vehicles less cumbersome and as affordable as possible.

Transitioning away from internal combustion engines and toward zero emission cars will have a powerful impact on air quality and help to limit the climate crisis in Wisconsin. Currently, transportation accounts for 29% of the greenhouse gas emissions in the United States, and it's the leading cause of heat-trapping pollution. Burning gasoline and diesel fuel creates harmful byproducts, including nitrogen oxide, carbon monoxide and hydrocarbons. These pollutants can cause significant health problems such as asthma, chronic bronchitis and heart attacks. Additionally, there can be delays in infant development, reduced IQ, attention deficits and learning difficulties.

To mitigate this pollution we need compelling incentives to buy clean vehicles. The Inflation Reduction Act includes incentives for purchasing clean vehicles. However, the qualifications associated with these incentives are daunting. From January 2023, “qualifying” used electric vehicles priced below $25,000 that are at least 2 model years old can qualify for up to $4,000 in federal tax credits. The credit must equal 30% of the sales price to a maximum of $4,000 credit. The credit is not refundable so you cannot get back more in taxes than you owe.

Why not make the credit refundable, eliminate the fact that the credit must equal 30% of the sales price, and change the credit for a maximum of $6,000? Additionally, most of the used or hybrid vehicles that are currently listed on the internet range between $9,000 and $81,000. The lower priced models are often compact or economy sized cars or are significantly older than 2 years. Many of these particular models are approaching over 7 years in age if not older. Consequently, there should be no restriction with regards to the price of used vehicles.

There are also restrictions regarding the buyer’s household income. It cannot be greater than $75,000 for individuals, $150,000 for a joint return, and $112,000 for the head of household. My proposal is to eliminate the income criteria.

When considering a new electric car or plug-in hybrid the criteria are quite restrictive to qualify to receive federal tax credit. Vehicles must be manufactured in North America and have a manufacturer's suggested retail price below $80,000 for an SUV or $55,000 for a sedan, wagon or hatchback. The maximum federal credit is $7,500.

As of April 2023, the full tax credit has been divided into two parts. To qualify for the first $3,750, at least 50% of a vehicle's battery components must be produced or assembled in North America. To get second $3,750 at least 40% of critical materials used in the battery must be extracted or processed in the U.S. or in a country with a U.S. free trade agreement partner, or they must be made from materials recycled in North America.

My proposal is to eliminate the battery restrictions and increase the federal tax credit to $10,000. The buyer should have a choice to use it as a down payment, apply it to any taxes owed or receive a refund.

Eliminating the red tape with regard to the purchase of new and used electric and hybrid vehicles would greatly incentivize Americans to buy green vehicles. This in turn significantly reduces air pollution. In the long run, reduction in air pollution would have positive effects on heart disease, early death, lung disease, diabetes, cancer, etc. Not only would reducing vehicle emissions go a long way in improving health, but electric and hybrid vehicles have lower fuel costs, flexible charging and are much cheaper to maintain.

When considering the purchase of a new or used vehicle I should not have to choose between what's better for my purse or what’s better for the environment. The federal government needs to put their money where their mouth is.