Tesla, Toyota, Honda and other automakers criticized a House plan offering up to $12,500 in electric vehicle tax credits. The plan included extra money for union-built cars and trucks made in the USA.
The House Ways and Means Committee took up the package on September 14, 2021, as part of a proposed $3.5 trillion spending bill.
How the credit would work
- A base $7,500 credit for plug-in electric vehicles.
- $500 more if the battery is made in the USA.
- $4,500 more for vehicles built by union workers in the USA.
- The plan would remove the 200,000-vehicle phase-out, and Reuters reported the credits would last 10 years.
Ford, GM and Stellantis supported the plan. Toyota, Honda, Hyundai, Kia and Nissan opposed the union bonus. Autos Drive America, which represents international automakers, said it would punish non-union USA workers.
“If Congress is serious about addressing the climate crisis, as well as its goal to see these vehicles built in America, it should treat all EVs made by U.S. auto workers fairly and equally.”
Honda statement
FAQ
How much would the maximum credit be?
$12,500.
What extra did USA batteries get?
$500.
Who opposed the union bonus?
Tesla, Toyota, Honda, Hyundai, Kia and Nissan, among others.
Source & credit
Source: CNBC, September 14, 2021: “Tesla, Toyota and Honda criticize $4,500 tax credit for union-made EVs”.