Toyota Motor and Honda are urging legislators to reject a bill that would expand tax incentives for electric vehicles manufactured in the United States.
The proposal – which Toyota blasted as “clearly biased” and “excessive” in a letter to Congress – would increase federal tax incentives from $7,500 to $12,500 for federally- and domestically-built cars. Vehicles with batteries made in the US will be eligible for an additional $500. If the law is passed, vehicles from automakers such as Toyota, Honda and Tesla would be excluded from the extended credit, while the “Big Three” manufacturers in Detroit would all qualify.
“the current [bill] The draft aims to accelerate the deployment of electrified vehicles by discriminating against American autoworkers, Toyota said in a letter to lawmakers. “It’s unfair, it’s wrong, and we ask you to decline this partisan offer.”
The automaker further said that the bill favors the rich – people who may not need public money to buy electric vehicles. The bill contains a means test provision that would limit access to the credit to individuals with an adjusted income of up to $400,000 or households up to $800,000. Whether or not to set an income cap — and what that income cap should be — has been a major point of contention between congressional Democrats and Republicans.
The bill also received criticism from Tesla CEO Elon Musk, who said on Twitter that it was “written by Ford/UAV lobbyists as they build their electric cars in Mexico. It’s unclear how it serves American taxpayers.” Is. “
This is written by Ford/UAV lobbyists, as they build their electric cars in Mexico. It’s not clear how it serves American taxpayers. https://t.co/FUUXARHlby
— name (@elonmusk) September 12, 2021
This will be the first increase to a $7,500 tax credit for EVs since it went into effect a decade ago. The bill would also eliminate a condition that exempts vehicles made by OEMs from selling more than 200,000 EVs on credit, meaning General Motor and Tesla cars would once again be eligible.
The bill received praise from GM, Ford Motor and Stelantis, the three major automakers with a workforce representing the United Auto Workers union. UAW also supports motion.
It is being considered by the House Ways and Means Committee on Tuesday. The expanded credit is just one part of a $3.5 trillion budget reconciliation bill that is currently being debated by Congress and includes a full range of socially progressive proposals targeting education, health care and climate change. .