The US’s 2021 Infrastructure Investment and Jobs Act (IIJA) and the 2022 Inflation Reduction Act (IRA) aim to spur electric vehicle development and adoption in the country.
The IIJA allocates $7.5 billion to build a nationwide network of 500,000 electric vehicle chargers. At the same time, the IRA is the most significant legislation designed to accelerate transportation electrification in US history, providing substantial tax credits to encourage the purchase of electric vehicles.
The IRA offers various types of tax credits to individuals and businesses, as well as states, municipalities, tribes, and government agencies, to encourage them to purchase electric vehicles, whether brand new or used.
Under the New Clean Vehicle Tax Credit, individuals and businesses can claim up to $7,500 per vehicle through 2032. The Used Vehicle Tax Credit allows eligible vehicles (vehicle price must be less than $25,000 and at least two years old) to qualify for up to $4,000 or 30% of the sales price, whichever is lower.
The Commercial Clean Vehicle Tax Credit allows commercial EVs to receive credit for up to 30% of the sales price, up to $7,500 for vehicles under 14,000 pounds, and up to $40,000 for all other cars. At the same time, the Clean Heavy-duty Vehicles allocate $1 billion to states, municipalities, Indian tribes, or non-profit school transportation associations to replace class 6 and 7 heavy-duty vehicles and school buses with clean EVs (Inflation Reduction, 2024).
With significant federal funds to develop EVs and their infrastructure and the provision of tax credits to encourage Americans to shift to electric vehicles, is there something more that the government and businesses can do to convince more Americans to embrace electric cars?
According to new research findings, when EV charging stations are installed closer to residents, it promotes a positive view of EVs and leads them to switch.
The findings of the Pew Research Center, published on 23 May 2024, show that proximity to an EV charging station positively correlates with EV ownership or desire to buy one – the closer the individual is to an EV charging station, the higher the chance that the person will switch to an electric or hybrid car.
The survey results show that 64% of Americans live within 2 miles of a public charging station. Those who live closest to EV chargers view EVs more positively, already own an EV or hybrid vehicle, would consider buying one, favour phasing out the production of fossil-fuel cars and trucks by 2035, and are more optimistic that the country will be able to build the infrastructure necessary to support large numbers of EVs on the roads than those who live farther away.
Key takeaways of the Pew survey include:
- Since December 2020, the number of public EV charging stations has more than doubled, from 29,000 nationwide to 61,0000 stations by February 2024. Over 95% of Americans live in a country with at least one public EV charging station.
- Urban residents have the most access to EV charging stations (60%) compared with those in the suburbs (41%), and rural (17%) areas.
- California has the most EV charging infrastructure at 43,780 compared with other states. However, it also has the highest number of EVs registered at 1.2 million, which places the ratio of 1 EV charger per 29 EVs. Other states with a small number of EV owners, like Wyoming, have a higher ratio between EV chargers and EVs at 1:6, North Dakota at 1:6, and West Virginia at 1:8.
- EV owners tend to live in urban areas, are relatively young, and are more likely to have a college degree.
- A surprising finding shows no difference in the attitude towards EVs between those who drive more than 100 miles and those who take shorter trips. In contrast, those who take longer trips are slightly more likely to say they own an EV or hybrid or consider buying one in the future than those who seldom take longer trips.
Overall, the Pew Research Center survey findings show that most EV charging stations are concentrated in urban areas. This shows the need to expand charging stations in less populated areas to increase accessibility, which is critical to the widespread adoption of EVs and encourages consumer decisions to shift to one.
Another key finding is that younger and higher-educated adults tend to own EVs and live closer to a charging station, highlighting the importance of implementing equitable infrastructure development to allow all demographic groups equal access to EVs.
Strategic placement of EV chargers that can be visible and accessible can boost public trust and encourage EV adoption.
Lastly, legislation and policies supporting EVs and green technology boost investments, create more job opportunities, support economic growth, and help achieve climate and environmental goals.
Source:
Infrastructure and Jobs act: Nationwide network of EV chargers. (2023, May 25). IEA. Retrieved from https://www.iea.org/policies/14978-infrastructure-and-jobs-act-nationwide-network-of-ev-chargers
Inflation Reduction Act & E.V.s. (2024). Electrification Coalition. Retrieved from https://electrificationcoalition.org/work/federal-ev-policy/inflation-reduction-act/
After One Year, the Inflation Reduction Act is Spurring Private Investments in the Electric Vehicle Industry. (2023, August 15). Electrification Coalition. Retrieved from https://electrificationcoalition.org/after-one-year-the-inflation-reduction-act-is-spurring-private-investments-in-the-electric-vehicle-industry/
US Electric Vehicle Manufacturing Investments and Jobs. (2023 March). EDF. Retrieved from https://www.edf.org/sites/default/files/2023-03/State-Electric-Vehicle-Policy-Landscape.pdf
Electric Vehicle Charging Infrastructure in the US (2023, May 23). Pew Research Center. Retrieved from https://www.pewresearch.org/data-labs/2024/05/23/electric-vehicle-charging-infrastructure-in-the-u-s/
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