President Obama and Democratic Senators support tax credit for EV manufacturers

Senator Sherrod Brown (D-Ohio) has authored a bill called the Security in Energy and Manufacturing Act, which would renew the Advanced Energy Manufacturing Tax Credit.

 

In this week’s State of the Union Address, President Obama endorsed an extension of the Advanced Energy Manufacturing Tax Credit, and he reiterated that call in a visit to Iowa on Wednesday. Senator Sherrod Brown (D-Ohio) has authored a bill called the Security in Energy and Manufacturing Act, which would renew the policy. Three other Democratic Senators have signed on as co-sponsors of the bill.

The tax credit, which was included in the Recovery Act, is available to manufacturers that produce various types of advanced energy-related products, including electric vehicles. According to the DOE, the program was more than three times oversubscribed, with 418 projects deemed eligible nationwide.

“We can’t trade a dependence on foreign oil for a dependence on foreign-made sources of energy,” Brown said. “It’s unacceptable that 70 percent of clean energy components are made outside of the U.S. Extending the Advanced Energy Manufacturing Tax Credit will help more American manufacturers create jobs through the production of cutting-edge energy technologies.”

Charged readers know that governments from Estonia to the UK to Korea to China are using tax policy to provide major support for the development of EVs. Will the US do the same?