There are also distributional impacts from these EV subsidies. IRS Statistics of Income data illustrate that, for the 2014 tax year, 78.7 percent ($207.1 million) of the federal consumer tax credits were received by
households with an adjusted gross income (AGI) of $100,000 or above. A further 20.5 percent of the tax credits ($54.1 million) were received by households with an AGI between $50,000 and $100,000. Therefore, over 99 percent of the total tax credits went to households with an AGI above $50,000. Further, the tax
credit data indicate that the manufacturing subsidies, which also benefit the consumers of EVs, primarily benefit households who are in the top-half of income-earners.
These data reveal that not only is the size of the EV subsidies substantial, they favor certain competitors over others, and primarily benefit upper income households.
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