Americans want tax incentives for electric vehicles. But are they ready to lose gas-powered cars forever?

By Rachel Koning Beals

Pew survey finds vast majority of Americans support EV incentives, like those nearing Congressional approval, but more divided when it comes to an actual EV purchase

Americans like the idea of ​​government and industry sweeteners to hasten the shift to all-electric or gas-electric hybrid vehicles.

But respondents to a recent Pew Research Center poll found Americans were more divided when asked if they would personally consider buying an electric vehicle the next time they buy a new car, SUV or SUV. van.

Mass adoption of electric vehicles and more model offerings from Tesla’s rival automakers (TSLA) are seen as a key part of the country’s efforts to halve its greenhouse gas emissions by 2030 and reach zero. net emission by 2050.

Still, Pew found that a majority of respondents oppose the complete elimination of gas-powered vehicles in the coming years. The poll was taken this spring, before the Senate late last month surprised voters with an apparent compromise on a near-dead spending bill that would revive electric vehicle tax credits and more. .

Read: Democratic healthcare and climate package should become law, but SALT issue presents hurdle, analysts say

Details are still up in the air this week, but lawmakers reportedly agreed to a conditional tax credit of $4,000 for the purchase of used electric vehicles and $7,500 for new ones.

Read more: Thinking about an electric vehicle? First-Ever $4,000 Tax Incentive for Used Electric Vehicles Part of Manchin Compromise

Overall, two-thirds of Americans support incentives to increase the use of electric and hybrid vehicles, according to the Pew survey. Democrats and independents who lean toward the Democratic Party are much more likely than Republicans and GOP supporters to say they favor incentives to increase electric vehicle use (84% to 46%).

Read: More right-wing Americans worry about climate change, but aren’t ready to give up gas stoves

About four in ten Americans (42%) say they would be very or somewhat likely to seriously consider buying an electric vehicle the next time they look for a new car or truck. A slightly larger share (45%) say they would not be too or not at all likely to, while 13% say they don’t plan to buy a vehicle in the future.

The share of Americans who are very or somewhat likely to buy an electric car or truck is about the same as in April 2021. Since then, the price of gasoline has increased significantly, from an average of $2.95 per gallon in April 2021 to $4.55 in May 2022, the time of the survey. Vehicle prices also rose amid broader inflationary pressures. Overall, Americans view electric vehicles as more expensive than gasoline-powered vehicles, according to a 2021 Pew survey.

Certainly, the purchase of an electric vehicle is not only about tax breaks and displayed prices. Potential electric vehicle buyers are weighing potential inventors against limited supplies and vital shortages of semiconductor chips. Cars, trucks and SUVs, especially electric vehicles, are now much less mechanical and more digital.

According to a recent Center survey, those most likely to consider buying an electric vehicle in the future are young adults, city dwellers, Democrats and those who already own a hybrid or all-electric vehicle.

A majority of 55% of adults aged 18-29 say they are very or somewhat likely to consider an electric vehicle the next time they buy a vehicle.

And it may take greater incentives to make electric vehicles affordable for this group more eager to adopt.

The reworked Senate agreement also includes a cap on the suggested retail price of eligible vehicles of $55,000 for new cars and $80,000 for pickup trucks and SUVs. The credits would be capped at an income level of $150,000 for a single filer and $300,000 for joint filers for new vehicles, and $75,000 and $150,000 for used cars.

Related: Tesla’s Model Y is the hottest used car in the US right now

Read: Tesla reports better-than-expected second-quarter profit and increased sales

The proposed legislation removes previous requirements that required qualified vehicles to be equipped only with plug-in electric motors. The new version leaves out a cap of 200,000 vehicles per manufacturer that automakers have fought against. This means that Tesla (TSLA), GM (GM) and Toyota (7203.TO), which had all reached the cap, can again attract buyers with this tax break.

Among Americans surveyed by Pew who said they were at least somewhat likely to consider buying an electric vehicle, a large majority say environmental protection (73%) and fuel savings (71%) are the main reasons. They are much less likely to say that following the latest vehicle trends is a main reason they would be likely to buy an electric vehicle (10%).

And while expensive vehicles are the type of purchase that could get things moving to slow climate change, it’s not just that segment of the economy that’s seeing traction.

The Pew survey also found that the majority of Americans overall support several other policies aimed at addressing climate change, including requiring power companies to use more energy from renewable sources. (ICLN)

From electric vehicles to audio visual vehicles, stay on top of the massive changes coming to automobiles. Join Tom Fennimore, CFO of Luminar Technologies, at the Best New Ideas in Money Festival September 21-22 in New York City.

-Rachel Koning Beals


(END) Dow Jones Newswire

08-02-22 1426ET

Copyright (c) 2022 Dow Jones & Company, Inc.

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