It also includes a 30% tax deduction for homeowners who install solar energy at their homes, and a variety of financial perks for switching to the electric versions of household appliances, tech used for running a business and even cars.
It is that last one that has investors sitting up to take notice.
Both new and used electric vehicles will be eligible for tax credits, up to $7,500 for new cars, and $4,000 for use ones. The bill also ends the 200,000 cap on the number of cars that can be sold by a manufacturer that qualify for rebates. That's good news for Tesla (TSLA) , which reached the cap long ago. But the flip side is that the bill limits the rebates to lower priced vehicles and families with relatively low incomes, so many high-end cars and trucks won't qualify.
While electric vehicles have been gaining popularity at a scorching pace as gas prices have pushed some drivers into the market – some estimates say interest in EVs has soared by as much as 60% since January 2022 – there is still a lack of inventory in the space.
That data comes from Recurrent, which took a deep dive look at a market that was worth $163 billion in 2020 and is projected to be worth $824 billion by 2030.
It found that over a dozen carmakers in America have rolled out plans to open EV manufacturing sites, spending $75 billion in six new states nationwide.
That is in addition to the $515 billion global auto companies are spending to build electric vehicles by 2030, when more than 100 new EV models are expected to be on the market, the report found.