The signing of the Inflation Reduction Act provides incentives for electric vehicles and accelerates US climate policy

18 August 2022

Tuesday this week USA’s President Joe Biden signed the Inflation Reduction Act (IRA), which is described as the most important climate legislation in US history. This means that the USA is taking big steps closer to an expansion of the EV infrastructure. ChargePanel, which works to simplify electric vehicle charging with improved infrastructure, therefore welcomes the signing of the Inflation Reduction Act.

The bill means more than $360 billion will be invested in energy and climate change programs over the next decade, including huge tax incentives to promote renewable energy and electric vehicles. The legislation contains many components that will help drive the electric car economy forward in the coming years and provides a number of financial incentives to encourage the purchase of electric vehicles as well as the expansion of charging stations. Among other things, the Inflation Reduction Act lifts the cap of 200,000 units per manufacturer for electric car sales, while it extends the $7,500 tax credit on the purchase of a new electric car. The tax deduction for property that refuels alternative fuel vehicles (for example electric vehicle chargers) is also extended until 2032.