EV tax credits are back — and bigger — in new Senate climate bill

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EV tax credits are back — and bigger — in new Senate climate bill
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E-bikes were left on the cutting room floor.

Senator Joe Manchin has had a change of heart about electric vehicles.

In an entirely new provision, the bill includes a $4,000 tax credit for the purchase of a used clean vehicle, a potential boon for middle and low-income car buyers who are less likely to be able to afford a brand new EV but are still hoping to switch to something less polluting. Other vehicles not eligible for tax credits include those with batteries that contain minerals that “were extracted, processed, or recycled by a foreign entity of concern,” which is defined as a state sponsoring terrorism or countries blocked by the Treasury Department’s Office of Foreign Asset Control.

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