The proposal – led by Rep. Dan Kildee, D-Mich., And expected to be included in the reconciliation bill – would increase consumer tax credits up to $ 12,500 for electric vehicles assembled in a factory represented by a union with batteries produced in the United States. . After five years, only electric vehicles assembled in the United States would qualify for the base credit of $ 7,500.
Senator Debbie Stabenow, D-Mich., Led an earlier Senate proposal that would also tie additional tax credits for electric vehicles to vehicles assembled at unionized U.S. factories.
“We appreciate your support for tax credits that encourage more consumers to consider [EVs]. However, we oppose proposed changes to the electric vehicle tax credit incentive in the House Reconciliation Bill that discriminate against U.S. auto workers, limit consumer choice, and prevent consumer choice. administration to meet President Biden’s climate change goals, âthe executives wrote in the letter. .
The House proposal, as it stands, would provide an additional $ 4,500 for electric vehicles assembled in union-represented factories in the United States – a provision that auto executives have called “discriminatory.”
âThis would unfairly disadvantage American workers who have chosen not to join a union and produce more than half of all vehicles in the United States and the vast majority of American-made electric vehicles,â the letter said.
The American International Automobile Dealers Association, a group that represents more than 9,000 international dealers in the United States, also urged House leaders to oppose the proposed electric vehicle tax credit in a letter. separate sent Thursday.
The association, which launched an awareness campaign on Monday to draw attention to the potential consequences of the proposal on jobs and the environment, said the policy “would pit American workers against each other and limit the consumer choice “.
âAny policy that divides us, or prioritizes some American auto workers over others, politicizes what should be a shared mission,â AIADA CEO Cody Lusk wrote in the letter. “Congress should not pick winners and losers from American workers.”
The UAW on Thursday urged Congress to pass the reconciliation bill with the “Kildee / Stabenow provision” on electric vehicle tax credits.
“By tying the grants to the Kildee / Stabenow provision to ensure that taxpayer funding goes to the national auto and battery assembly, and to ensure those jobs are well-paying union-wide jobs, we are protecting our future, âsaid UAW President Ray Curry. A declaration. “After all, those jobs of the future that replace traditional engine jobs must provide the same wages and benefits to the middle class that built our modern economy.”
Ford Motor Co., General Motors and Stellantis – whose workers are represented by the UAW – praised the House’s proposal on tax credits for electric vehicles. Others in the industry have called for broader incentives.
âThe US auto industry has committed billions to increase consumer use of green vehicles. You are not reducing climate change by making over 90% of electric vehicles ineligible for credit, âsaid Jennifer Safavian, CEO of Autos Drive America, a group that represents the US operations of international automakers.
The Alliance for Automotive Innovation, which represents most of the major automakers, said in a statement this month that it appreciates the work of the House Ways and Means Committee to expand vehicle tax credits. electric by removing the ceiling by manufacturer.
But to meet President Biden’s goal of having zero-emission vehicles account for 40-50% of all new vehicles sold by 2030, the alliance said, âWe need to make sure the incentives are applicable to everyone. manufacturers, do not discriminate between companies and available, thus preserving consumer choice as more and more electric vehicles enter the market in all models and price points. “
The National Automobile Dealers Association, also this month, said it “supports tax credits to incentivize the purchase of electric vehicles, but cannot support the bill in its current form.” NADA said it will continue to work with lawmakers to expand credits for each nameplate sold by its franchisee members.