On Wednesday’s broadcast of NBC’s “MTP Daily,” host Chuck Todd stated that the cost of the electric vehicle tax credits contained in the Inflation Reduction Act is “going to be far higher” than what was budgeted for and will “be a hit on our own debt and deficit coming up.”
While discussing the Biden administration’s proposal for auto emissions standards and aims to push the auto industry towards electrification, Todd noted that lack of raw materials, battery capacities, a lack of charging stations, and the cost of electric vehicles are obstacles to the adoption of electric vehicles.
With regards to the cost, Todd stated, “Then, you look at vehicle costs, and this is, again, where the Inflation Reduction Act comes in. Right now, the average overall vehicle price, just under 50 grand, average electric vehicle is just over 60 grand. This Inflation Reduction Act gives you a tax credit of $7,500. That brings the cost down here to about 54 [thousand], so then you’d have a $5,000 difference.”
He added, “This, however, by the way, the amount now that we expect consumers to use this tax credit is going to be far higher than we expect — than what was budgeted for. That’s going to be a hit on our own debt and deficit coming up.”
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