CBO Sees Higher IRA Costs From EV Credit Popularity, EPA Auto Rules

February 9, 2024
New Congressional Budget Office (CBO) analysis roughly doubles the estimated cost of Inflation Reduction Act (IRA) climate and clean energy incentives, citing greater projected uptake of tax credits for electric vehicles (EV) in part because of demand spurred by EPA’s pending vehicle emissions standards. In addition, the office is also expecting greater popularity of IRA-supported investments in renewable power and battery manufacturing. The revised estimates, released Feb. 7 in a broader 10-year outlook for the federal budget , underscore the...

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