U.S. Senate panel advances new electric car tax credit of $12,500 – Honolulu, Hawaii

Honolulu, Hawaii 2021-05-29 05:55:05 –

Washington DC: A proposal to raise the tax credit for electric vehicles from the current $ 7,500 to $ 12,500 is underway in the US Senate.

The Senate Finance Committee first approved the bill on Wednesday. However, tax credits apply only to electric vehicles assembled by US union members.

The proposed bill limits tax credits to vehicles priced less than $ 80,000.

The current tax credit for electric vehicles applies to vehicles of all prices. Also, when automakers sell 200,000 EVs, the current tax credit will be phased out.

Both General Motors and Tesla have sold more than 200,000 vehicles and are no longer eligible to offer a $ 7,500 tax credit.

The new proposal, entitled “Clean Energy for the United States,” passed the Senate Finance Committee with a 14-14 vote.

Sponsored by Senator Debbie Stavenau of the Democratic Party of Michigan, the EV proposal raises a $ 7,500 tax deduction for electric vehicles manufactured in the United States by $ 2,500 and is a member of or represented by workers. An additional $ 2,500 will be raised for cars assembled by workers. Union.

Automakers such as Tesla and Volkswagen do not employ union members in the United States and are only eligible for smaller tax credits on their vehicles.

Congress estimates that the tax credit for electric vehicles will be $ 31.6 billion by 2031.

Notably, the bill is 30% for automakers to refurbish factories or build new facilities as the government seeks to encourage the development of advanced energy technologies, including batteries. We also offer tax credits.

The Biden administration has also proposed $ 174 billion for the development of electric vehicles and the construction of charging stations, including $ 100 billion for consumer rebates.

Meanwhile, United Auto Workers Chairman Rory Gamble praised the tax credit law, saying that “EV production will directly create high-paying jobs for future trade unions defended by President Biden.”

However, some Republicans have vehemently criticized what they consider to be a battle to abolish the use of oil and gas in the United States.

“This is a frontal attack on my state,” said Republican Senator John Cornyn of Texas. “This is an idealistic jihad for the status quo … many jobs in our country rely on the oil and gas sector,” he quoted in Reuters.

U.S. Senate panel advances new electric car tax credit of $12,500 Source link U.S. Senate panel advances new electric car tax credit of $12,500

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