Bill Overview
Title: Affordable Electric Vehicles for America Act of 2022
Description: This bill extends until after 2025 the requirement that final assembly of vehicles occur within North America for purposes of the clean vehicle tax credit.
Sponsors: Rep. Sewell, Terri A. [D-AL-7]
Target Audience
Population: People interested in purchasing electric vehicles (EVs) globally
Estimated Size: 10000000
- The bill concerns the clean vehicle tax credit, which is related to consumers who purchase electric vehicles (EVs).
- The requirement changes specifically affect the manufacturing location of vehicles that qualify for the tax credit, hence impacting automakers with plants in North America.
- The bill targets consumers interested in purchasing electric vehicles and who are eligible for tax credits.
- The continued requirement for final assembly to occur in North America may encourage automakers to maintain or expand production facilities in the region, impacting jobs and economic activity related to the automobile industry in North America.
Reasoning
- The policy targets North American electric vehicle (EV) consumers and automakers, with an emphasis on vehicles assembled in North America to qualify for tax credits. This will attract buyers interested in tax incentives, boost North American manufacturing thereby providing job security, and push consumers towards environmentally friendly vehicle choices.
- We need to consider various demographics including current EV owners, potential EV buyers, blue-collar workers in automotive manufacturing, and even those unaffected due to disinterest in EVs or financial inability to afford new cars regardless of incentive.
- The budget allows a significant but finite supply of tax credits, potentially limiting scope if consumer interest outpaces financial support.
- Simulated interviews will cover diverse individuals in terms of socio-economic background, geographic location, occupation, and interest in the EV market.
Simulated Interviews
Software Engineer (Austin, TX)
Age: 35 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- I think it's a great incentive to go fully electric, especially with the tax credits. If the car is assembled in North America, that gives me more assurance of quality and helps local jobs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
Automotive Assembly Line Worker (Detroit, MI)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- This policy could be a lifesaver for my job security. I worry about the industry moving jobs overseas, but this makes me feel like there will be investment here.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 3 |
Entrepreneur (San Francisco, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I think EVs are the future and tax incentives make them more attractive. However, the cost is still a factor, even with credits. I'd like to see more value coming from such incentives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 6 |
Retired School Teacher (Tallahassee, FL)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I don't see how this would affect me directly, as I can't afford a new car, let alone an electric one.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Non-Profit Director (Denver, CO)
Age: 50 | Gender: other
Wellbeing Before Policy: 9
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy aligns with my values and I hope it encourages more people to buy EVs. It might not directly benefit me, but it's good for society.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Graphic Designer (Brooklyn, NY)
Age: 25 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- I'm not sure this policy affects me much since I don't own a car and rely on public transportation, but environmentally, I think it's a step in the right direction.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Tech Company Executive (Seattle, WA)
Age: 40 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- This policy makes sense for sustainability and keeping jobs local. I would consider switching to an electric car if it made financial sense.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Data Analyst (Chicago, IL)
Age: 32 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- The tax incentive is a persuasive reason to buy an EV now, especially since I want to support more environmentally-friendly transportation options.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 10 | 5 |
| Year 20 | 9 | 5 |
Construction Site Manager (Raleigh, NC)
Age: 55 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 0.0 years
Commonness: 11/20
Statement of Opinion:
- While I see the benefits, I can't justify the cost of an EV against my work needs. Maybe if trucks qualify for incentives, I'd reconsider.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 4 | 4 |
| Year 3 | 4 | 4 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
Restaurant Manager (Los Angeles, CA)
Age: 39 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- I like the idea of saving on taxes with an EV, but I'm waiting to see better options for larger family vehicles. It's too small of an impact for me right now.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $1500000000 (Low: $1000000000, High: $2000000000)
Year 2: $1500000000 (Low: $1000000000, High: $2000000000)
Year 3: $1500000000 (Low: $1000000000, High: $2000000000)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The tax credits will continue to incentivize purchasing of electric vehicles until after 2025, sustaining market demand.
- The requirement ensures that manufacturing stays localized within North America, which could protect against long-term tax revenue losses from offshoring.
- The policy supports national priorities around reducing vehicle emissions and encourages growth within the electric vehicle market.