The $369 billion climate and tax package Democrats in the Senate proposed this week could have far-reaching effects on the kinds of cars that Americans drive, where those cars are made and how the country produces its energy. The legislation also aims to break China’s hold on battery supply chains.
The bill, which came back from the dead after Senator Joe Manchin III of West Virginia unexpectedly dropped his opposition, could greatly accelerate changes already underway in the automotive and energy industries.
The proposal aims to simultaneously fight climate change and energize domestic manufacturing. For the most part, it would do so through tax breaks and other incentives — a carrot, rather than stick, approach that is likely to go down easier in corporate boardrooms and with voters…
…Tax credits are viewed as one of the least expensive ways to reduce carbon emissions. The benefits are worth four times their cost, according to calculations by the Energy Policy Institute at the University of Chicago…
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