The White House declined to say how the $100 billion would be distributed or how much the grants will be.
In 2019, Senate Democratic Leader Chuck Schumer proposed awarding $392 billion in subsidies for owners to trade in gasoline-powered vehicles at least eight years old and in driving condition for electric vehicles, plug-in hybrid or fuel-cell cars. The old vehicles would be scrapped.
The Biden plan also calls for $20 billion for electric school buses, $25 billion for zero emission transit vehicles and $14 billion in other EV tax incentives.
Treasury said in a report the proposed incentives are "to encourage people to switch to electric vehicles and efficient electric appliances."
Senator Debbie Stabenow and Representative Dan Kildee, both Michigan Democrats, have been working on a bill to revise and expand the EV tax credit, they said in a recent joint interview with Reuters.
Kildee wants to skew the credit in favor of vehicles with more affordable vehicles with longer range, to "democratize the electric vehicle market."
He said they are "looking at ways to make the credit more accessible to middle- and lower-income families, potentially even making the credit refundable."
Kildee said EVs are "where the market is going -- full stop. The only question that we have to answer is are these going to be vehicles made by American workers." Kildee said they could also introduce a credit for used EV purchases.
Stabenow said it was important to give automakers incentives to produce electric vehicles in the United States.
"China has committed $100 billion to grab this market -- both battery cell production but also in other component parts of electric vehicles," Stabenow said. "We better take it seriously."
The Biden plan also calls for $80 billion for rail, including $16 billion for Amtrak's national network and $39 billion to fix the northeast corridor especially infrastructure in the New York City-area.
Politico reported the email earlier.
(Reporting by David Shepardson; Editing by Chris Reese and David Gregorio)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.