One of the earliest US efforts to encourage the use of electric vehicles was the Energy Policy Act of 1992, which encouraged the use of alternative energy (including electricity) through mandatory and voluntary approaches. .
The Inflation Reduction Act (IRA), passed in August 2022, includes various grant programs and tax incentives to meet the goal of building a clean energy economy.
Part of the Act focuses on accelerating EV adoption, with $369 billion in dedicated funding allocated for climate investments. The Clean Vehicle Tax Credit introduces a new set of conditions for electric vehicle models to qualify for incentives.
From 2023 onwards, these conditions stipulate that final assembly must take place in North America and that vehicles must have a battery of 7 kWh or more (excluding PHEV low-range plug-in hybrid electric vehicles) , has a gross weight of less than 6.35 tons and has an MSRP of less than $80,000 for trucks, SUVs and pickups or $55,000 for other vehicles.
Through loan financing programs, US federal funds are used to provide credit support with the goal of accelerating project implementation.
Currently, the U.S. Bureau of Construction (part of the Office of the Secretary of Transportation) and the U.S. Department of Energy's Office of Loan Programs offer loan financing programs. Credit support includes secured (direct) loans, loan guarantees and lines of credit. This solution could encourage private and non-federal co-investment in projects.
China's manufacturer support policy is currently the leading country in the global electric vehicle market, accounting for 44% of the world's total electric vehicle fleet.
In 2020, China had more than 4 million electric cars , 300 million electric two-wheelers (more than 50% of the global market) and more than 420,000 electric buses (99% of the global market).
From 2009 to 2022, the Chinese Government has allocated more than 200 billion yuan (equivalent to 29 billion USD) in subsidies and tax breaks for electric vehicles, supporting electric vehicle companies to maintain operations. In the early years, preferential policies were implemented to encourage people to buy electric vehicles.
The Government subsidy is also stratified by battery capacity.
Pure electric cars with a driving range of over 400km will receive a subsidy of 3,600 USD, from 250 - 400km will receive 2,600 USD, and under 250km will not be subsidized. PHEV vehicles with a battery range of 80km are subsidized by 1,500 USD.
In addition, China has policies to support consumers. In 2022, the Ministry of Finance, the State Tax Administration and the Ministry of Industry and Information Technology of China announced a 5% tax exemption for buyers of all electric cars, hybrid cars with external charging and fuel cell vehicle.
The government also reduced electric vehicle registration fees by 50%. These policies have helped Chinese people save 5.7 billion USD in the first 7 months of 2022.
In addition, China has increased budget spending on electric vehicles, accounting for 50% of the total value of new vehicles purchased by the Government in the period 2016 - 2021. Besides, nearly all vehicle factories are required to must have the capacity to produce electric vehicles.
The Chinese government has actively provided significant incentives to buyers and provided subsidies to automakers for more than a decade, aiming to promote the clean auto sector.
These efforts have attracted a significant number of companies into the Chinese auto market. At one stage, consumers received incentives of up to 8,317 USD when purchasing electric vehicles.
