Light-Duty EV Consumer Adoption

Press Release: ZETA Joins Industry Partners in Calling for EV Consumer Incentives

September 3, 2021

FOR IMMEDIATE RELEASE: 09/03/2021

Washington, D.C. – Today, the Zero Emission Transportation Association (ZETA) joined major automotive industry partners in calling for an expansion of federal electric vehicle (EV) consumer incentives. These partners included the Alliance for Automotive Innovation, Autos Drive America, and the Electric Drive Transportation Association. The automotive industry is united in expanding EV consumer incentives in order to effectively accelerate the transition to electric vehicles, which will address climate change and create good-paying American manufacturing jobs. 

“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.

To that end, the letter asserts, “With the goal of significantly increasing the number of EVs on the road, the [EV consumer incentive] should fully apply to the broadest range of vehicles and be available to the broadest range of consumers.”

ZETA has previously 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, and we are pleased to join our industry partners in this advocacy.”

This industry letter is the latest in ZETA’s continued advocacy about EV consumer incentives reform. Earlier this month, ZETA published a blog and sent a letter to Congress, which both provided detailed guidance about how to reform the 30D tax credit.

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.

Policy Platform

Learn about our six-part strategy for electrification.

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.