The most controversial part of the expanded $ 12,500 EV tax credit so far has not been the expense itself, but the requirement that vehicles that get the maximum amount – $ 4,500 of the $ 5,000 program increase that is given – will have to be union-fact.
As part of an updated measure embracing climate issues and social spending introduced Wednesday, Democrats in the U.S. House of Representatives made the EV tax credit a little less on affordability.
Cadillac Lyriq concept
A new framework, adapted from version presented by the House in September, allows any van, truck and SUV priced up to $ 80,000 to qualify for the credit. That’s a big boost from the original $ 64,000 limit for vans, $ 69,000 for SUVs, and $ 74,000 for pickups. A $ 55,000 MSRP limit appears to remain in place for sedans.
At the same time, however, the bill reportedly reduces a single file’s maximum income for eligibility from the previous $ 400,000 down to $ 250,000.
An expanded EV tax credit, which he had collected bipartisan support alone – albeit canceled by Trump—It turned into a more toxic topic with the Biden administration adding a requirement imposed by the union. Both the Senate and House versions under consideration would give a bonus to the relatively few Union-produced vehicles that are on the horizon for the next few years, including the current Chevrolet Bolt EV, as well as the upcoming Ford F-150 Lightning and Cadillac Lyriq.
Sticker made by UAW on 2022 Chevy Bolt EV
As for the trade union arrangement, the longer the proposal remains on the table, the more opposition apparently accumulates. The pushback now includes Tesla, nearly all foreign automakers, and 11 Republican state governors. A group of 25 foreign ambassadors even wrote a joint letter calling the qualification “incompatible with US commitments under the WTO multilateral agreements”.
Earlier this week Toyota made a particularly strong statement on the issue, essentially stating that this bill values the American motorist less if he hasn’t joined a union.
Toyota, which produced a new advertising campaign to counter the union demand, continued: “And what does this say to Americans who want to buy an electric vehicle to fight climate change? He says having more electric vehicles on the road is secondary to promoting unionization. “
That may not be the intent, but with the rapidly evolving package itself, this could be subject to another round of changes. Stay tuned.