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Analyzing the Impact of the Inflation Reduction Act on Electric Vehicle Uptake in the United States

Analyzing the Impact of the Inflation Reduction Act on Electric Vehicle Uptake in the United States

Full Title: Analyzing the Impact of the Inflation Reduction Act on Electric Vehicle Uptake in the United States
Author(s): Peter Slowik, Stephanie Searle, Hussein Basma, Josh Miller, Yuanrong Zhou, Felipe Rodríguez, Claire Buysse, Sara Kelly, Ray Minjares, Logan Pierce, Robbie Orvis, and Sara Baldwin
Publisher(s): Energy Innovation and The International Council on Clean Transportation
Publication Date: January 31, 2023
Full Text: Download Resource
Description (excerpt):

This study assesses the future impact of the IRA on electrification rates for LDV and HDV sales in the United States through 2035. We analyze the value of the personal and commercial EV tax credits, factoring in the various supply chain, income, and price caps on new EVs, and combine this with new estimates of future light-duty and heavy-duty EV cost declines. We find that, on average over the period 2023–2032, the IRA tax credits will reduce light-duty EV purchase costs by $3,400 to $9,050. Using methodologies from the Energy Policy Simulator, we project how these changing costs and incentives over time will affect the LDV and HDV markets in the United States.

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