A tax credit for electric cars that Tennessee Republican U.S. Sen. Lamar Alexander is pushing for could cost taxpayers nearly $16 billion, critics reportedly said in a new study.
This, according to a new article in Bloomberg.com, which identified Alexander and Maine Republican U.S. Sen. Susan Collins as two of the bill’s main backers.
The proposed legislation would grant automakers a $7,000 tax credit for an additional 400,000 vehicles. Members of the Washington, D.C.-based American Fuel & Petrochemical Manufacturers commissioned the study, Bloomberg reported.
“This study confirms that expanding the EV tax credit would make an already expensive and inefficient policy even more burdensome for U.S. taxpayers,” the website quoted Chet Thompson, AFPM’s president and chief executive officer, as saying.
As reported, Alexander told The Tennessee Star last month that there are more electric cars on the road now versus a decade ago. He also said these electric cars travel a greater distance than they did 10 years ago.
Alexander also said investing in electric vehicles “is one way to help our country and the world deal with climate change.”
As The Star reported in February, research shows electric car manufacturers wouldn’t make a tidy profit in a pure free market system because, at least right now, there isn’t enough demand for that product.
As reported in 2015, Tennessee had 2,568 registered EVs on the road.
In three years, that number has increased, slightly, to 3,735 EVs. Davidson County, meanwhile, currently has 746 registered EVs, according to the Tennessee Department of Revenue.
Also, as The Star reported last fall, taxpayers have paid millions of dollars to help electric vehicle manufacturers not only get their products out on the road but also furnish electric car charging stations all over Nashville.
Prior reporting shows few people around Nashville appear to use these charging stations.
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