US Democrats Propose Dramatic Expansion of EV Tax Credits That Favors Big Three

WASHINGTON—U.S. Democratic lawmakers on Friday proposed an expansion of tax credits for electric vehicles that includes significantly higher subsidies for union-made zero emission models assembled in the United States. The proposal, a key part of President Joe Biden’s goal to ensure EVs comprise at least 50 percent of U.S. vehicle sales by 2030 and boost U.S. union jobs, will give Detroit’s Big Three automakers a big competitive edge and has drawn criticism from foreign automakers like Honda Motor Co. and Toyota Motor Corp. The tax credit for up to $12,500 per vehicle for U.S.–made union-made zero emission models compares with a $7,500 incentive for most other electric cars—an amount that has not changed. The bill, however, does away with phasing out automakers’ tax credits after they hit 200,000 electric vehicles sold, which would make General Motors Co. and Tesla Inc. eligible again. It would also create a new smaller credit …Read More

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