Automakers say 70% of EV models do not qualify for tax credits under the Senate bill
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Buyers of a majority of electric vehicle models would not qualify for a $7,500 tax credit under a Democratic proposal in the US Senate.
That’s what a group of major car manufacturers say.
Car manufacturers have been privately concerned about the proposal’s requirements for vehicle batteries and critical mineral content to be sourced from the USA.
The July 27 proposal by Senators Chuck Schumer and Joe Manchin would make 70% of US electric, plug-in hybrid and fuel cell EVs out of transit, according to John Bozzella, leaders of the Alliance for Automotive Innovation.
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Senator Joe Manchin, a Democrat from West Virginia and Senate Majority Leader Chuck Schumer (D-NY). (Kent Nishimura/Los Angeles Times via Getty Images/Getty Images)
The group represents, among others, General Motors, Toyota Motor and Ford Motor.
“No one will qualify for full credit when additional purchasing requirements come into effect,” he said.
The car manufacturers want significant changes in the proposal, which is part of a larger price, energy and tax bill.
The new GM logo is seen on the facade of General Motors headquarters in Detroit, Michigan on March 16, 2021. (REUTERS/Rebecca Cook/Reuters Images)
Without the tax credit, the vehicles become more expensive for American consumers.
President Biden has a goal that half of all new vehicles sold will be electric or plug-in hybrid models by 2030.
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An analysis by the Congressional Budget Office on Wednesday suggested that only 11,000 new electric cars would use the credit in 2023.
Walmart and Electrify America announced that more than 120 charging stations have been added to stores in 34 states. (Walmart)
Manchin and Schumer’s offices did not immediately comment. The Senate could vote on the bill as early as Saturday.
The bill includes increasing requirements for the percentage of battery components sourced from North America based on value. After 2023, it would not allow batteries with Chinese components.
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Rather, the group sees a more gradual phasing in of the battery component, critical mineral and final assembly requirements.
Reuters contributed to this report.
