Editor's note: This commentary has been updated to correct the history of production of the battery cells in the Chevrolet Bolt.
The Inflation Reduction Act is the biggest overhaul of U.S. automotive policy in a generation. If all goes according to plan, it will transform what Americans drive on the streets — and create economic boomlets for the states that manufacture those new vehicles and components.
At least that's the plan. This new law is so ambitious — and the manufacturing deadlines are so tight — that it's hard to imagine every goal being met on time. The incentives for EV consumers are large, but so are the strings attached for manufacturers and suppliers.
By extending the $7,500 tax credit on new electric cars through 2032, adding a $4,000 credit for used EV purchases and including up to $40,000 of credits for commercial vehicles, the law should push ahead the moment of price parity between EVs and conventional internal combustion engine vehicles to 2025-26, years ahead of most previous projections.