US House Democrats propose EV tax credits of up to US$12,500

US House Democrats propose EV tax credits of up to US$12,500

The bill will make Tesla Inc eligible again after they previously hit a cap on US$7,500 incentive.

WASHINGTON:
US Democratic lawmakers late Friday proposed boosting tax credits for electric vehicles to up to US$12,500 per vehicle for union-made zero-emission models assembled in the US.

The House Ways and Means Committee will vote on Tuesday on the proposal which is a part of a broad tax measure in a planned US$3.5 trillion spending bill.

The bill would make General Motors Co and Tesla Inc eligible again for EV tax credits after they previously hit a cap on the existing US$7,500 incentive. It would also create a new smaller credit for used EVs.

The bill would make most electric vehicles eligible for a US$7,500 tax credit and then give automakers who assembled vehicles with union labour in the US an additional US$4,500 tax credit and US$500 for vehicles meeting US domestic content requirements, including having battery cells manufactured in the US.

The proposal to give union-made vehicles higher credit has already drawn criticism from foreign automakers like Honda Motor Co.

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