Contact: Noah Barnes, Electrification Coalition
noah@electrification.org, (202) 461-2371
WASHINGTON—On August 16, 2022, President Joe Biden signed the Inflation Reduction Act, a landmark piece of legislation that, two years later, has leveraged generational levels of public and private investment in electric transportation to make our nation stronger and safer.
The IRA extended tax credits for light-duty electric vehicles (EVs) and charging equipment, created new tax credits for used and commercial EVs (including medium- and heavy-duty vehicles), provided key support for EV manufacturing and supply chains, and positioned the U.S. to maintain automotive leadership as the world shifts to electric transportation.
The revised light-duty EV tax credit included new stipulations that, to receive the credit, vehicles must have final assembly in North America, and an increasing percentage of battery components must be manufactured or assembled in North America. Additionally, an increasing percentage of critical minerals must be mined or processed in the U.S. or countries with which the U.S. has a free trade agreement, or recycled in North America.
Because of the Inflation Reduction Act, many states are seeing significant private investments in electric vehicle manufacturing, including:
- North Carolina, with $25.4 billion in investments and 8,000 added jobs
- Georgia, with $24.5 billion in investments and 24,000 added jobs
- Tennessee, with $12.4 billion in investments and 13,000 added jobs
- Nevada, with $11.9 billion in investments and 11,000 added jobs
- South Carolina, with $11.7 billion in investments and 9,000 added jobs
- Michigan, with $8.4 billion in investments and 14,000 added jobs
- Ohio, with $7.3 billion in investments and 7,000 added jobs
(Source: EC/Atlas Public Policy based on public corporate and federal announcements)
As we mark the second anniversary of the Inflation Reduction Act, Electrification Coalition Executive Director Ben Prochazka released the following statement:
“Because global oil markets are controlled by bad actors who do not share our democratic values, oil’s century-old monopoly on transportation has had devastating impacts on our economic and national security, leading to the loss of American blood and treasure. Actions around the world impact how much Americans pay at the pump, while electricity is produced domestically from various sources and is far more stable.
“As the U.S. transitions to electric transportation, we cannot trade the economic and national security risks of oil for an automotive industry that could be controlled by China and other countries that do not share our values. For decades, the U.S. has led the world in motor vehicle production, but as the world transitions to EVs, we must sprint to catch up with other countries. The Inflation Reduction Act ensures that Americans will build the next generation of electric cars, trucks and buses.
“The Inflation Reduction Act is spurring billions in private-sector investments in electric vehicle manufacturing and supply chains, creating good-paying jobs across America, crossing political boundaries and benefitting red states and blue states.
“The impacts of the Inflation Reduction Act are just starting to show up but will eventually reach every garage, every child who will ride an electric bus to school and every worker building our electrified transportation future.
“Leaders on both sides of the aisle recognize the value of the tax credits in the Inflation Reduction Act, with Rep. Andrew Garbarino (R-N.Y.) and 17 other House Republicans sending a letter to Speaker Mike Johnson (R-La.) last week, urging him to keep the tax credits in place because they are incentivizing valuable investments.
“Americans deserve the freedom to choose what vehicle works best for them, and an increasing number are switching to electric vehicles for the many benefits they offer, including lower fuel and maintenance costs, reduced air pollution, and a superior driving experience. We thank the elected officials who made this generational legislation possible.”
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About the Electrification Coalition: The Electrification Coalition is a nonpartisan, nonprofit organization that promotes policies and actions to facilitate the widespread adoption of plug-in electric vehicles (EVs) on a mass scale to overcome the economic, public health and national security challenges that stem from America’s dependence on oil. ElectrificationCoalition.org