More than 100 US lawmakers urge Pelosi to support union EV tax credits

Last month, 12 major foreign automakers urged Democrats to reject a proposed $4,500 tax stimulus and are lobbying lawmakers to reject the union stimulus.


EV proposal to phase out tax credits after 200,000 EVs are sold by automakers

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EV proposal to phase out tax credits after 200,000 EVs are sold by automakers

More than 100 US House lawmakers on Tuesday urged Speaker Nancy Pelosi to place a $4,500 tax credit incentive for union-built electric vehicles (EVs) in a massive spending bill. In a letter seen by Reuters, 107 Democrats urged Pelosi to retain the credit backed by the United Auto Workers (UAW) union, the AFL-CIO and US automakers. The $4,500 credit would give a significant boost to Detroit’s three automakers — General Motors Co., Ford Motor Co. and Chrysler-parent Stelantis.

The letter, led by Representative Thomas Suozzi, states, “We strongly support leveling the playing field between the non-union and unionized workforce by including an additional $4,500 incentive to support union-produced EVs. “

Suozhi said the incentives “guarantee that working men and women are an integral part of that success story.”

Pelosi’s office declined to comment.

Tesla Inc. and foreign automakers do not have unions representing assembly workers in the United States and many have struggled with efforts to organize US plants.

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A House panel last month approved legislation to increase EV credits to $12,500 per vehicle, which includes $4,500 for union-built vehicles and $500 for US-made batteries.

Last month, 12 major foreign automakers, including Toyota Motor Corp, Volkswagen AG, Honda Motor, Hyundai Motor and Nissan Motor, urged Democrats to reject a proposed $4,500 tax stimulus and lobbied lawmakers to reject the union stimulus. are.

A House panel last month approved legislation to increase EV credits to $12,500 per vehicle, which includes $4,500 for union-built vehicles and $500 for US-made batteries.

Foreign automakers said the proposal “would unfairly harm American workers who chose not to join a union and produce more than half of all vehicles in the United States and the vast majority of American-made EVs.” “

The tax credits, which are part of a proposed $3.5 trillion spending bill, would cost $15.6 billion over 10 years.

EV proposal phases out tax credits after automakers hit 200,000 electric vehicles sold, which would re-qualify Tesla as well as GM, though Tesla won’t get the $4,500 credit .

0 notes

Tesla Chief Executive Elon Musk suggested on Twitter last month that the EV proposal was “written by a Ford/UAV lobbyist… it’s unclear how it serves American taxpayers.”

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