US Dems Propose EV Tax Credit Expansion
Sept. 14, 2021—Several Democratic lawmakers late last week proposed a significant expansion of current tax credits for electric vehicles.
CNBC reports the proposal, which supporters say would play a large role in helping reach President Biden's 50 percent EV goal, would included "significantly higher" subsidies for union-made, U.S.-produced zero emissions vehicles. Foreign automakers such as Honda and Toyota have criticised the proposal, saying it would give the Detroit Three a large competitive edge in the EV market.
“We want to incentivize this," Rep. Dan Kildee (D-Mich.) told Reuters. "It puts American manufacturers in the lead, which is where we want them, and it reduces emissions faster than any other policy that we could put in place."
If approved, the measure would make EVs produced in the U.S. would be eligible for a $12,500 tax credit, up significantly from the current $7,500. It would also do away with the 200,000 unit cap placed on OEMs, making automakers such as GM and Tesla eligible for those subsidies once again.