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U.S. Democrats Propose Dramatic Expansion of EV Tax Credits In favor of Big Three

Washington — Friday US Democrats Electric car This includes significantly higher subsidies for union-made zero-emission models assembled in the United States.

An important part of the proposal Of President Joe Biden The goal of having EVs account for at least 50% of US car sales by 2030 and boosting the work of US unions has given Detroit’s big three car makers a great competitive edge. Honda When Toyota..

US-made union zero tax credit of up to $ 12,500 per vehicle release The model is compared to most other $ 7,500 incentives Electric car — Amount that has not changed.

However, the bill will abolish the phasing out of automakers’ tax credits after automakers sell 200,000 electric vehicles. General Motors When Tesla Eligible again. It also creates new small credits for used EVs up to $ 2,500.

House Democrats hasn’t previously revealed how much EV credits can be increased. Dramatic hikes and other revisions could reduce the price of some EVs, including: GM’s Chevrolet Volts are one-third as many, making battery-powered vehicles more competitive with similar petrol models and, in some cases, cheaper.

Michigan Democrat Dan Kildee told Reuters, “I want to give this an incentive, which will take the initiative of US manufacturers and expel faster than any other policy we want. You can reduce the amount. “

He said the new EV tax credit would cost an estimated $ 33- $ 34 billion over a 10-year period.

“Within 10 years, I want to see American workers earn good wages to build American electric cars,” he added.

Mr Biden said he wanted a large EV tax credit, based on the proposal as the basis for climate policy. “He wants us to lean forward. Let’s grow up and get this done,” Kirdy said in a recent conversation with Biden.

Invoice facing opposition

GM, Ford And Stellantis, parents Chrysler, US-made vehicles, United Auto Workers Union.

In contrast, foreign automakers operating in the United States and Tesla do not have unions to represent assembly workers, many of them UAW Organize US plants.

Honda said in a statement last month that talks about EV tax proposals gained momentum and the workers “should not be punished for their choice of workplace as they deserve fair treatment from Congress.” ..

The House Ways and Means Committee will vote on Tuesday for a proposal that is part of the broader tax measures of the planned $ 3.5 trillion spending bill.

The bill will face opposition in the Senate, which is evenly divided 50-50 between Republicans and Democrats. Republicans have severely criticized many of the spending bills, and Democrats must hold all 50 votes in the Democratic Senate for approval.

However, the Senate committee in May also approved a bill to raise EV credits for US cars manufactured by union workers up to $ 12,500, despite opposition from all Republicans.

The proposed EV credit is valid for 10 years and allows consumers to deduct the value of the credit from the selling price at the time of purchase.

By 2027, the $ 7,500 credit will only apply to vehicles made in the United States.Small EV credits will also be lower battery pack.

The bill states that individual taxpayers must have an adjusted total income of $ 400,000 or less in order to obtain a new EV tax credit. Limit EV credits to Price car For under $ 55,000 truck It can be priced up to $ 74,000.

However, these restrictions can face repulsion.

Last month, in a non-binding amendment, the Senate banned taxpayers from claiming EV tax credits if they earn more than $ 100,000 a year or if the price of a vehicle exceeds $ 40,000. I voted for it.

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U.S. Democrats Propose Dramatic Expansion of EV Tax Credits In favor of Big Three

Source link U.S. Democrats Propose Dramatic Expansion of EV Tax Credits In favor of Big Three

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