Electric vehicle incentives are getting a total makeover
Thinking of buying an electric car? Two huge new climate policies — the Inflation Reduction Act that President Biden signed last week, and a major bill that Governor Charlie Baker signed Aug. 11 — include subsidies intended to make them more affordable.
The federal bill includes tax credits of up to $7,500 for new electric or fuel-cell vehicles, extending the previously existing tax incentives. Some plug-in hybrids qualify, too.
The new Massachusetts bill will increase rebates for new fully electric cars and fuel-cell cars from $2,500 to between $3,500 and $5,000 — the exact amount is yet to be determined — with an additional $1,500 rebate for low-income residents and an extra $1,000 for those who trade in an internal combustion vehicle.
But the state bill doesn’t include a timeline for implementing any of these changes. And it’s not clear how the new program will be paid for: The new climate bill sets up an Electric Vehicle Adoption Trust, but doesn’t actually fund it. (The money could come from a separate economic development bill, but the Legislature failed to complete it before the session ended last month, so the timing and outcome remain uncertain.)
For now, the old program is still open and funded until the middle of 2023, according to Kyle Murray, Massachusetts senior policy advocate at the Acadia Center.
Read the full article in The Boston Globe here.