The tax credit goes directly to the buyer of the car not the car maker. In 2024 the credit will be allowed to be applied at time of purchase by the car dealer.This tax credit is effectively a subsidy from the American taxpayer to the car maker. That's why just cutting the MSRP $7,500 doesn't work.
Which is why I say this is a subsidy. Indirect to the car maker, but still a subsidy. Also, EVs purchased with this subsidy have an automatic $7,500 drop in resale value the minute you drive them off the dealership/manufacturer lot because there's an assumption that you go the full $7.500 even if you didn't have that much tax liability for the year.The tax credit goes directly to the buyer of the car not the car maker.
Meanwhile, the US manufacturers will be held to a domestic content requirement that the imports are not? If so, that effectively hobbles the domestic producers and gives the imports an advantage.If buyers will flock to foreign car manufacturers with the updated tax incentives it should, in turn, make domestic makes like GM become even more competitive perhaps making an even better product.
In the old days, every product was so much more simple. If it was American..it was made in the USA. If it was Japanese it was made in Japan so on and so forth. Everything is so much more expensive and the supply chains are all over the place as well as the site of final assembly. And now you have congressional officials now arguing that XYZ must be made in the USA/NAFTA areas. Meanwhile, it is these officials that have pushed for unionized goods which drove corporate to build elsewhere. It is a vicious cycle. .Meanwhile, the US manufacturers will be held to a domestic content requirement that the imports are not? If so, that effectively hobbles the domestic producers and gives the imports an advantage.