12 Auto Execs urge house spokesman Pelosi for wider electric vehicle tax credits
The proposal – led by Rep. Dan Kildee, D-Mich. and earmarked for inclusion in the Reconciliation Act – would increase consumer tax credits up to $ 12,500 for electric vehicles assembled in a factory represented by a US-made battery union. After five years, only US-assembled electric vehicles would be eligible for the base loan of $ 7,500.
Senator Debbie Stabenow, D-Mich., Spearheaded an earlier Senate proposal that would also tie additional electric vehicle tax credits to vehicles assembled in U.S. unionized factories.
“We appreciate your support for tax credits that make more consumers think [EVs]. However, we oppose the proposed changes to the EV tax credit incentive in the House of Representatives’ Atonement Act that discriminate against American auto workers, limit consumer choice and prevent the government from meeting President Biden’s goals on climate change, ”the executives wrote in the letter.
The House of Representatives proposal, as it stands, would provide an additional $ 4,500 for electric vehicles assembled in US factories represented by a union – a provision auto managers call “discriminatory”.
“This would unfairly disadvantage American workers who have chosen not to join a union and manufacture more than half of all vehicles in the United States and the vast majority of electric vehicles made in America,” the letter said.
The American International Automobile Dealers Association, a group representing more than 9,000 international nameplate dealers in the U.S., also called on House leaders to endorse the proposal for an electric vehicle tax credit in a separate letter sent Thursday to oppose.
The association, which launched an awareness campaign on Monday to raise awareness of the proposal’s potential impact on employment and the environment, said the policy would “pit American workers against each other and limit consumer choice”.
“Any policy that divides us or gives some American auto workers priority over others politicizes a common mission,” wrote Cody Lusk, CEO of AIADA, in the letter. “Congress shouldn’t pick winners and losers among American workers.”
The UAW called on Congress on Thursday to pass the Reconciliation Act with the “Kildee / Stabenow provision” on tax credits for electric vehicles.
“By tying subsidies in the Kildee / Stabenow provision to ensure taxpayers’ money goes into domestic auto and battery assemblies and to ensure these jobs are well-paying union-scale jobs, we are protecting our future,” said UAW – President Ray Curry in a statement. “After all, these jobs of the future, which will replace traditional engine jobs, must offer the same middle class wages and benefits that have built our modern economy.”
Ford Motor Co., General Motors and Stellantis – whose workers are represented by the UAW – have praised the House of Representatives proposal for tax credits for electric vehicles. Others in the industry have called for broader incentives.
“The US auto industry has allocated billions to increase consumer use of green vehicles. You are not reducing climate change by disregarding over 90 percent of electric cars, ”said 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 earlier this month that it recognizes the work of the House Ways and Means Committee to expand the tax credits for electric vehicles by removing the cap per manufacturer.
However, in order to achieve President Biden’s goal of zero-emission vehicles accounting for 40 to 50 percent of all new vehicles sold by 2030, the alliance said, “We need to ensure that incentives apply to all manufacturers, do not discriminate between companies, and are widely available – which gives consumers the choice, as more and more electric vehicles in all models and price ranges are coming onto the market. “
The National Automobile Dealers Association also said earlier this month that 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 increase the credits for every name badge sold by its franchise dealer members.