The U.S. Congress rejected to extend a $7,500 tax credit for electric vehicles (EVs); however, it will boost funding for aviation safety after two fatal Boeing 737 MAX crashes.
Tesla and General Motors have been pushing for over a year for an extension of the credit, which phases out once an auto manufacturer hits 200,000 vehicles sold, and many legislators had been pushing to include the extension. The tax credit score is aimed at defraying the price of EVs, which might be costlier than equally sized internal combustion engine vehicles.
GM, as well as Tesla, has already crossed 200,000 EV sales. Senator Debbie Stabenow, a Michigan Dem who authored a deal to extend the credit, stated Monday the EV offer faced significant opposition from the White House, according to her office.
Tesla’s credit dropped to $1,875 in July and will be zero after December 31. GM’s credit plunged to $1,875 on October 1; shall be zero after March 31.
Stabenow proposed in April granting each auto manufacturer a $7,000 tax credit for more 400,000 vehicles on top of the present 200,000 vehicles qualified for $7,500 tax credits. A different bill in the U.S. House recommended a smaller credit for used automobiles.
In response to two fatal Boeing crashes that killed 346 people and resulted in the grounding of the 737 MAX, Congress will increase investment for aviation safety by $67 million, which is “for hiring specialized staff with expertise in human factors; and ramps up training and credentialing necessities for security inspectors.”
The FAA’s certification of the MAX and its long-standing practice of assigning some duties to Boeing has come under harsh criticism from lawmakers.