The $1.2 trillion infrastructure bill has money for cars, planes and trains

The infrastructure bill starts at $110 billion to build or widen roads, add public electric chargers, fill potholes and cement or replace old bridges. There is also funding for local public transportation, for Amtrak and to improve airports and ship ports. GT

President Biden is expected this week to sign a new infrastructure bill that, although less than what some Democrats have lobbied, still provides $1.2 trillion for a range of projects covering everything from old water and sewer pipes to a high-speed internet. Speed ​​for rural and urban communities. , in addition to improvements to the American electrical grid.

Much of the money will be directed toward transportation projects, including upgrades to the country’s increasingly dilapidated highways and bridges, along with the struggling rail operations run by Amtrak. The bill approved by the US House of Representatives on Friday follows the president’s pledge to allocate billions of dollars to accelerate the transition from internal combustion to battery-powered cars. More chargers should help increase the penetration of electric cars. They account for about 3% of sales in the United States now and about 10% in California.

A separate bill for higher tax deductions, up to $12,500 for the purchase of electric cars, is still waiting for action.

“We are going to build the first ever national network of charging stations across the country — over 500,000 of them,” Biden said, “so you’ll be able to go through the whole darn country, from the East Coast to the West Coast, just like you stop at a gas station right now.” .

$110 billion for roads and bridges

In terms of transportation related projects, here’s what your infrastructure bill will save you on:

  • $110 billion goes into repairing, replacing, and adding new roads and bridges. The White House says this will include the largest single investment in bridge construction since the launch of the National Highway System.
  • $66 billion will be allocated to passenger and freight rail improvements, helping to reverse years of late maintenance and upgrades by Amtrak. Although the $80 billion Biden sought is not available, it represents the largest infusion of money since Amtrak was founded 50 years ago.
  • $39 billion for public transportation, including a series of long-awaited projects in New York City. This money will go to repairs to buses, railroad cars, tracks and stations, and adding new, cleaner inventory.
  • $25 billion goes to airports to handle repairs and maintenance, and to tackle delays and congestion.
  • $17 billion to work in the nation’s ports, a move that could address some of the underlying causes of shortages facing consumers and manufacturers alike — including automakers.
  • $15 billion for vehicle electrification programs. A cornerstone of this will be the creation of a national network of charging stations – something seen as critical to persuading Americans to switch from internal combustion vehicles to battery-powered ones.
  • $11 billion goes to the Safe Streets for All program that aims to reverse the recent increase in deaths on US highways, including those involving pedestrians and cyclists.

Key parts of the $1.2 trillion infrastructure bill are $550 billion for transportation of all kinds and $240 billion for utilities including power infrastructure, broadband, and water systems. In the spring, the Biden administration sought $2.3 trillion. While it represents a reduction, the bill still represents one of the largest US infrastructure projects ever.

US Ranking 13y In infrastructure quality

Former President Donald Trump actively campaigned to prevent the infrastructure bill from being passed, but in the end, a number of Republicans joined with Democrats in approving the measure in the House. The final wording of the bill garnered widespread support among those who felt it was time to invest in infrastructure work after decades of delay. Trump himself had promised to address such problems during his tenure but did not do so.

The United States, once a world leader, ranks 13y In the world when it comes to infrastructure quality, according to the World Economic Forum, it is behind not only France, Germany and Japan, but China, India and the United Arab Emirates. The American Society of Civil Engineers rated the country’s infrastructure as C minus this year.

The infrastructure bill attracted skeptics when House Democratic leaders came up with a formula to fund it while avoiding new taxes. Among other things, lawmakers agreed to redirect $250 billion in Covid-19 relief funds, and recoup another $50 billion in fraudulent unemployment benefits provided during the pandemic.

Not yet considered by Congress: Increase tax benefits to up to $12,500 for the purchase of electric vehicles and reinstatement of Tesla’s above and General Motors electric vehicles. Bill Howard

Electric Vehicle Buyer Loans Pending Action by Congress

The separate legislation — tagged Build Back Better by the administration — contains provisions that would increase tax benefits on new electric vehicles to up to $12,500. Current rules provide a tax credit for electric vehicles, including some plug-in hybrids, with a battery of at least 16 kWh. Most electric vehicles have batteries ranging from 50 to 100 kWh. Credits for the first 200,000 cars sold by an automaker. Tesla and General Motors have already crossed the line.

The Electric Vehicle Tax Proposal includes these provisions, including penalties for buyers of electric vehicles not made in the United States or not made in Union plants:

  • The 200,000-car tax cap per automaker was removed, bringing Tesla and General Motors back into play.
  • The main tax benefit of $7,500 from the tax credit turns into a refund and is for vehicles with batteries over 40 kWh, which means nearly every electric vehicle is on sale now. Families whose tax bills were less than $7,500 in the year they bought electric vehicles now only return as much as they owe.
  • Only the $4,000 credit is for vehicles with smaller batteries, most of which are plug-in hybrids.
  • $4,500 additional benefit for vehicles built in US factories with labor unions. Example: Ford Mustang Mash-
    The E will not get any credit because it is made in Mexico.
  • An additional $500 for electric vehicles that contain 50% of the battery components made in the United States, including battery cells.
  • After five years, the base benefit of $7,500 applies only to electric vehicles made in the United States.
  • It is currently proposed to cap the prices of electric vehicles eligible for the incentives at $55,000 for sedans and $80,000 for SUVs, vans, and vans. Maximum quantities have changed several times. The BMW iX mid-size SUV won’t get any cashback because two of the ornate 3-Stripe slate cost more than $80,000; The entry-level BMW iX xDrive40 is under $80,000, but it won’t get any refund because all BMW EV SUVs are built outside of Munich even if all of the world’s gas-engine BMW SUVs are made in South Carolina. The Tesla Model X and Model X will be above the price ceiling as well, along with many other premium electric vehicles.
  • Income caps on tax benefits may mean no benefits for single file taxpayers with an adjusted gross income (AGI) of $250,000, and $500,000 for subscribers. This is approximately 2% of the population.

House Infrastructure Bill 228-206 only passed because 13 Republicans sided with Democrats, who needed votes after six Liberal Democrats refused to vote for if Congress didn’t simultaneously vote on a $1.9 trillion social safety net/project Climate Change Law.

It is possible that some lawmakers in the New South who voted for the infrastructure bill will not support a bill that would take out the full tax benefits of electric vehicles for factories in their area. About half of all cars in the United States are now built in the southern states.

Leave a Reply

%d bloggers like this: