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Automaker says 70% of EVs won’t qualify for tax credit under Senate bill

WASHINGTON — Most electric vehicle models will be exempt from the $7,500 tax credit for U.S. buyers based on a Democratic proposal in the U.S. Senate, a group of major automakers said Friday.

Automakers have privately expressed concerns about the proposed increased requirements for vehicles. battery Key mineral ingredients are sourced from the USA.

John Bozera, head of the Alliance for Automotive Innovation, which represents General Motors, Toyota, Ford and others, said on a July 27 proposal by Senators Chuck Schumer and Senator Joe Manchin that the U.S. He said 70% of the 72 cars will be electric. plug-in hybrid Fuel cell EVs are not eligible when passing through.

“Once additional procurement requirements take effect, we will not be eligible for full credit,” he said.

Automakers want drastic changes to this proposal, which is part of a larger drug price, energy and tax bill.

Without the tax credit, cars would be more expensive for American consumers, and this could impact demand and sales. It can also slow progress toward your goals. new car Electric or plug-in hybrid models to be sold in 2030.

An analysis by the Congressional Budget Office on Wednesday suggested 11,000 new EVs will use the credit in 2023.

Manchin and Schumer’s offices did not immediately comment. The Senate can vote on the bill on Saturday.

“I don’t think we should build modes of transport using foreign supply chains,” Manchin said on Tuesday.

The bill includes increased requirements for percentage North American battery components based on price. After 2023, batteries with Chinese components will be banned.

“A more gradual phasing in of battery components, critical minerals, and final assembly requirements that better reflect current geopolitical, procurement, and mining realities will earn the credit of millions of Americans. We will keep it,” Bozella wrote.

Automakers want to expand the countries from which they can source batteries, battery components, and vital minerals to include NATO members, Japan, and others.

The new EV tax credit, which expires at the end of 2032, is limited to: truckvans and SUVs with a suggested retail price of $80,000 or less, and car price Under $55,000. Only families with adjusted gross income up to $300,000 per year are eligible.

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Automaker says 70% of EVs won’t qualify for tax credit under Senate bill

Source link Automaker says 70% of EVs won’t qualify for tax credit under Senate bill

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