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The Democrats’ plan increases the EV tax credit for truck and SUV prices

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WASHINGTON – Democrats in the U.S. House of Representatives released an updated social spending and climate measure Wednesday that extends a proposed $ 12,500 tax credit to more expensive zero-emission vehicles, while lowering income limits for eligible buyers.

The updated bill, which could be voted on by the House in the coming days and which now provides for paid family leave, revises the prices for vehicles eligible for the credit. vans, sport utility vehicles Other truck with a manufacturer’s suggested retail price of up to $ 80,000 are eligible, while sedans remain at $ 55,000 as they were in the previous version.

The previous version limited credits to $ 64,000 for vans, $ 69,000 for SUVs, and $ 74,000 for pickup trucks. The previous EV tax credit plan is estimated to cost about $ 15.6 billion over 10 years.

The new proposal limits the entire EV tax credit for individual taxpayers reporting adjusted gross income to $ 250,000 or $ 500,000 for joint registrants, down from $ 400,000 for individual taxpayers and $ 800,000 for joint registrants.

The proposal would give a big boost to electric vehicles but it faces opposition from Republicans, foreign automakers, and foreign governments.

The house plan includes an incentive of $ 4,500 for Union-produced vehicles and $ 500 for those produced in the United States batteries. The vehicles are expected to be made in the United States starting in 2027 to be eligible for any of the $ 12,500 credit.

EV tax credits are supported by President Joe Biden and the United Auto Workers syndicate and would disproportionately benefit Detroit’s big three automakers – General Motors Co, ford Motor Co and Stellantis NV, Chrysler’s parent company, assembling their US-made vehicles in factories represented by the unions.

Foreign carmakers harshly criticized the decision to give union-produced vehicles a big advantage, while 25 ambassadors wrote to lawmakers https://www.reuters.com/business/autos-transportation/international-opposition-mounts-proposed -us-ev -tax-credit-2021-10-30 Friday in opposition.

Electric vehicle proposal phased out tax credits after automakers hit 200,000 electric vehicles sold, which would do again GM eligible, together with Tesla Inc.

Tesla and foreign automakers have no unions representing US factory workers, and many have fought UAW efforts to organize US factories.

The bill would create a electric bicycle tax credit, a 30% commercial electric vehicle credit, and a $ 4,000 used electric vehicle tax credit.

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