Persuading people to buy electric vehicles is key to the industry’s success, and EV credits – tax rebates provided by the federal government – make that possible for more people.

“Cashback” always sounds like a good deal, right? You might even have bought one or two things in your life that you did not actually need but did so because of a rebate or credit. When limes are 10 for a dollar, do you buy the two you’ll be using in tonight’s margarita or 20 because they’re on sale?

Electric vehicles are the future, and the future is here. The industry brings with it environmental benefits, economic opportunities and infrastructure development. EVs even have the potential to promote equity and improve community mobility options.

Let’s look closer at those benefits. EVs help reduce greenhouse gas emissions and air pollution, which contributes to combating climate change. An expanding EV industry brings job growth, innovation and economic development in areas related to manufacturing, infrastructure and technology, and drives investments in charging infrastructure such as public charging stations. EVs can help reduce transportation-related emissions in historically disadvantaged areas and provide cleaner mobility options for those who may not have access to private vehicles.

Benefits notwithstanding, persuading people to buy electric vehicles is key to the industry’s success, and EV credits – tax rebates provided by the federal government – make that possible for more people. According to IRS.gov, “If you bought a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D.”

Critics argue that EV credits benefit higher-income individuals, exacerbate existing socioeconomic disparities, and may lead to a loss in tax revenue, potentially burdening taxpayers who don’t benefit from the credits. They claim that the cost of implementing and maintaining these credits could outweigh the economic benefits and that focusing on charging infrastructure may divert resources from other sustainable transportation alternatives, such as public transit or cycling infrastructure.

So, are EV credits the way to go? Or do we buy ten limes when we only need two?

Rome wasn’t built in a day. Early technology adoption is almost always led by those to whom it is most accessible, and credits can open that umbrella wider. EV credits drive adoption, which drives benefits, which drives more adoption. Credits make more EVs affordable for consumers by reducing the upfront cost. The greater the adoption, the faster the price drops. And greater adoption leads to increased overall fuel efficiency and decreased reliance on fossil fuels. Before you know it, it’s the year 2030, and according to Bureau of Labor Statistics projections, more than half of us are driving an EV.

Rather than expand the divide, EV credits can promote equity by making electric vehicles more affordable for lower-income individuals and communities. An expanded charging infrastructure can help address range anxiety and enhance convenience for EV owners, facilitating the transition to cleaner transportation, including public transit.

As for cycling infrastructure, we can bike and EV at the same time. It’s the penny-perfect solution.

Written By: Aaron Bickart

It may sound like heresy, but Henry Ford was a procrastinator.

“I need a faster horse.” That was the consumer mantra when the early automobile market was still elite. People didn’t realize that cars were the answer and would soon be ubiquitous. So, when Ford introduced the Model T in 1908, the first gas-powered automobile widely available in the U.S., he thought he had reached his goal of building the “universal car.” 

This achievement required Ford to adapt the moving assembly line to manufacture his vehicles – arguably his greatest innovation – and to focus on that, he froze the design of the Model T. The new process was wildly successful, increasing delivery from 10,000 cars in 1908 to over 900,000 in 1920.

Ford offered affordable products to a larger segment of the population than had ever been available before. The cars were easy to drive and of good quality. Ford was sitting on a gold mine, and he was satisfied with that. Critics, as well as many of his own salesmen, urged him to diversify his product line. But Ford thought the only improvements needed were those made to defects, not style. Emphasizing his well-known perspective that his cars should be “any color so long as it is black,” he said ⎯

“It is strange how, just as soon as an article becomes successful, somebody starts to think that it would be more successful if only it were different. There is a tendency to keep monkeying with styles and to spoil a good thing by changing it.”

Ford, one of the world’s greatest innovators, had stopped innovating.

At the peak of Ford’s market domination, General Motors began producing cars for distinct market segments. Ford’s fortunes began to slip. And by 1927 when Ford brought the Model A to market, its market share had fallen from about 65% to nearly 15%, and it was losing $20 on each car it produced. Ford’s failure was simply his refusal to continuously innovate.

Modern technology is replete with similar examples – Blockbuster’s death by Netflix, Circuit City’s fall to Best Buy, Compaq’s loss to HP, Monster.com’s tumble to LinkedIn, all the old department stores consumed by Amazon…to name but a few. Another procrastinating giant drops to an innovating competitor every day.

A disproportionate number of successful-in-the-moment companies doing all the right things – making penny-perfect payments, maintaining their status quo – want to live off the legacy of their current businesses. Those are The Procrastinators. Others are always innovating and looking for the next sizzle – the next big thing – The Innovators.

Which are you? Are you satisfied? Are you comfortable? Are you looking to upgrade? Are you leading the pack? Are you chasing the tail? Are you worried it’s too late that you missed your chance?

In 1927 when Ford introduced the Model A, it was offered in four colors (no black) with a long list of useful performance improvements over the Model T. It was produced for five years during the Great Depression, with sales of over $4.3 million (roughly $74 million in today’s dollars). The Model A, Henry Ford’s last-ditch response to innovation demands he was reluctant to make, saved the business and secured its place in automotive history.

It seems clear: If you don’t keep innovating, you’ll almost certainly be left behind. Many of the mighty have fallen and not lived to tell the tale. Be like Henry Ford. Don’t procrastinate, innovate.

Written By: Aaron Bickart