FOR IMMEDIATE RELEASE: 08/26/2021

Washington, D.C. – Today, the Zero Emission Transportation Association (ZETA) published an article that calls upon Congress to expand federal consumer incentives for electric vehicles (EVs). The article discusses the 30D tax credit, examining its strengths, deficiencies, and opportunities for reform – these would help make EVs more accessible and affordable to Americans across income groups.

“Consumer incentives are necessary because they expand the share of EVs on the road,” said Joe Britton, the Executive Director of ZETA. “Increasing the proportion of EVs in the fleet will generate important environmental, public health, and economic benefits for all Americans.”

The transportation sector is the most-polluting part of the economy, so electrifying the transportation system is our best opportunity to reduce our climate change-causing emissions. Tailpipe emissions are also responsible for 22,000 American deaths annually. In total, achieving 100% EV sales by 2030 would – in tandem with a cleaner grid – generate $1.3 trillion in health and environmental cost savings in the coming decades.‍

EV incentives encourage individuals to buy EVs when they otherwise would not, and when these credits are limited, EV demand is materially reduced. Furthermore, consumer incentives increase demand, motivating manufacturers to provide more EV options and ultimately reduce vehicle costs. After all, while many automakers are working to bring EVs to market, vehicle prices will drop only once they achieve sufficiently high sales to reach economies of scale.

ZETA’s article calls on Congress to make several concrete reforms to increase the accessibility and effectiveness of the 30D tax credit, including applying it to used vehicles, delivering the credit at the point-of-sale rather than as a rebate, and removing the arbitrary per-manufacturer unit cap that has solely impacted domestic automakers. These reforms will make it easier for middle- and lower-income Americans to purchase EVs.

ZETA additionally urged Congress to not hinder the efficacy of the 30D tax credit by implementing burdensome manufacturer's suggested retail price (MSRP) or adjusted gross income (AGI) caps. These restrictions miss the point of consumer incentives, mistakenly treating the first driver as the sole beneficiary of the federal investment. Rather, these consumer incentives are designed to accelerate economy-wide EV adoption, which will deliver vast environmental, public health, and economic benefits to the entire public at a high rate of return. Restrictions would only serve to slow EV adoption, harming all Americans – and particularly those frontline communities most affected by the deleterious environmental and health effects of emissions.

“It is imperative that we do not limit the emissions reduction and economic benefits that electrifying the transportation sector will bring,” added Britton. “ZETA urges Congress to create strong consumer incentives, expanding EV access to middle- and lower-income individuals.”

This article is the latest in ZETA’s continued advocacy about EV consumer incentives reform. Earlier this month, ZETA sent a letter to Congress with detailed guidance about how to reform the 30D tax credit, among other EV policy recommendations.‍

About ZETA‍

The Zero Emission Transportation Association (ZETA) is a federal coalition focused on advocating for 100% EV sales by 2030. ZETA is committed to enacting policies that drive EV adoption, create hundreds of thousands of jobs, secure American global EV manufacturing dominance, drastically improve public health, and significantly reduce carbon pollution.