US Commercial Fleets get EV Incentives
Commercial fleets will be getting electric vehicle incentives from the US government from January 1st 2023.
The move to persuade delivery and other companies to make the switch to using EVs aims to reduce the use of diesel ICE powered vehicles particularly in built-up urban environments. Reuters reports that these first-of-its-kind incentives, established under President Joe Biden’s Inflation Reduction Act (IRA), will offer tax credits of $7,500 or $40,000 depending on the size of the EV models chosen.
Delivery companies like FedEx and Amazon.com would qualify at the $7,500 level for many of their electric trucks. Those tax credits can be combined with voucher programs in California, New York and other states that are spending billions of dollars to convince companies to switch to zero-emissions vehicles.
Non-US automakers
Also the IRA’s commercial EV credits do not have the “made in the USA” rules that apply to passenger cars and so open up the market to global automakers to compete on a level playing field with US automakers. Data suggests the US commercial transportation sector, which includes large and small trucks, buses and airplanes, accounts for more than one-third of the planet-warming greenhouse gases produced in the nation.
Jim Farley, chief executive at Ford which markets electric Transit LCVs and the F-150 Lightning, this year predicted that IRA tax credits would have a “dramatic impact on the adoption of EV”. Travis Katz, CEO of General Motors’ BrightDrop added: “We’re already hearing from customers that they’re excited about this.”
— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_
