Incentivizing Electric Vehicle Manufacturing

This chapter explores various tax credits that promote electric vehicle (EV) and battery manufacturing, particularly focusing on the 45X production tax credit aimed at closing the manufacturing cost gap with China. It examines the historical context of these credits, their impact on domestic investments, and the significance of leasing strategies in accessing these credits. Additionally, the chapter highlights the essential charging credit and discusses the political challenges facing EV tax incentives amidst ongoing debates.