Light-Duty EV Consumer Adoption

Press Release: ZETA Analyzes the House and Senate Proposals for EV Incentives

September 15, 2021

FOR IMMEDIATE RELEASE: 09/15/2021

The Zero Emission Transportation Association (ZETA) analyzed the EV consumer incentives provisions included in the House Ways & Means Committee's proposal and the Senate Finance Committee's proposal. The two proposals will be reconciled, and the final draft is expected to be included in the reconciliation package.

Both proposals remove the per-manufacturer cap on consumer EV incentives, which has been a significant impediment to EV adoption. The Ways & Means proposal, however, narrows the tax incentive with AGI, MSRP, and manufacturer limitations that dramatically curtail the credit’s deployment value. AGI caps unreasonably focus on the first driver and ignore the vast environmental, public health, and economic benefits of electrification. Counterintuitively, they also harm lower-income EV buyers because income verification requirements make it difficult to apply the credit at the point of sale. Low MSRP caps in the Ways & Means proposal also force manufacturers to produce lower range, less desirable vehicles, which diminishes the consumer experience and will slow EV adoption.

Read ZETA's full analysis here.


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.



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About ZETA

National policies to support 100% electric vehicle sales.

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