DEM plan will give an additional $4,500 tax incentive to union-built, US-built electric vehicles: report
WASHINGTON – Toyota Motor Corp and Tesla clashed with Ford Motor Company and the United Auto Workers (UAW) union in the US House over a proposal by Democrats to offer an additional $4,500 tax incentive to union-built, US-made electric vehicles.
In a letter to Congress, Toyota said the plan discriminates against nearly half of American autoworkers who do not belong to a union and urged lawmakers to deny “excessive tax breaks” to wealthy buyers of high-priced cars and trucks. called upon to
The bill, to be taken up Tuesday by the House Ways and Means Committee as part of a proposed $3.5 trillion spending bill, would benefit Detroit’s Big Three automakers — General Motors, Ford Motor Company and Chrysler’s parent Stellantis N.V. -Assemble your US-made vehicles at the represented plants.
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The proposal increases the maximum tax credit for these electric vehicles to $12,500 – including a $500 credit for using US-made batteries – from the current $7,500, which remains the same for all others. The bill also phases out the tax credit after automakers hit 200,000 electric vehicles sold, which would make Tesla Inc. as well as GM re-qualified, though Tesla would not receive the higher credit.
Tesla and foreign automakers operating in the United States do not have unions representing assembly workers and many have countered UAW efforts to organize US plants.
Tesla Chief Executive Elon Musk said on Twitter on Sunday that the EV incentives were “written off by Ford/UAV lobbyists as they build their electric cars in Mexico. It’s unclear how it serves American taxpayers.”
Ford manufactures its electric Mustang Mach-E in Mexico, although these vehicles will not qualify for the larger tax credit.
Asked to respond, Ford spokesman Mark Truby said Ford would build its EV F-150 Lightning in Michigan and the all-electric e-transit van in Kansas City “and more.”
The UAW did not comment on Musk’s tweet, but noted that the majority of autoworkers globally represented the union.
“American tax money should be paid for the products here and American workers should be given a voice just like every other autoworker in the world,” it said on its website.
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Honda Motor, which has auto plants in Alabama, Indiana and Ohio, said the EV incentive “discriminates between EVs made by hard-working American auto workers, simply on the basis that they belong to a union.”
Toyota currently doesn’t make any complete EVs in the United States, but plans to sell two new EVs in the US next year.
Meanwhile, Stelantis praised the plan, saying it “stimulates the market by making electrified vehicles affordable for more Americans, which in turn will support well-paying, middle-class jobs.”
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The bill also proposes a new EV tax credit for commercial vehicles, a 15% credit for electric bicycles and a $2,500 credit for used EVs.