The more you look behind corporate and government press releases these days, the more you learn about their mutual benefit society. We wrote Tuesday about the many subsidies for Teslaās electric cars, but it turns out thereās also a pot of subsidy gold behind the Hertz decision to buy 100,000 Teslas for its car-rental fleet.
Tesla CEO Elon Musk says he isnāt giving Hertz a discount on the reported $4.2 billion order. But he doesnāt need to because the House reconciliation spending bill includes a 30% tax credit for āqualified commercial electric vehicles.ā
The text doesnāt clearly define what is a āqualified commercial electricā vehicle, but our sources say Hertzās Teslas would likely make the cut. The credit could save Hertz $1.26 billion and make a Tesla almost as cheap for Hertz to buy as a Toyota Camry.
Hertz plans to install thousands of electric-vehicle chargers, which could also be eligible for taxpayers subsidies. The House spending bill extends a 30% tax credit for the installation of EV charging stations through 2031, which is on top of the $7.5 billion appropriation for stations in the separate Senate infrastructure bill.
Hertzās interim CEO Mark Fields is casting the companyās Tesla order as a strategic business decision and evidence that EVs are going mainstream. Maybe, and thereās no doubt that the Tesla order is winning progressive accolades for the rental-car company. Electric vehicles are also less expensive to maintain than gas-powered cars, so they could reduce Hertzās operating costs.
But if EVs make business sense, why must the government subsidize them? Democrats complain that corporations arenāt paying their fair share in taxes, but then they give them generous tax breaks for promoting progressive policies that reduce their tax payments.
Enjoy that Hertz Tesla ride. Youāll have paid more for it than the rental contract says.
https://www.wsj.com/articles/behind-that-hertz-tesla-purchase-elon-musk-mark-fields-rental-cars-electric-vehicles-congress-subsidy-11635283895