A new clean energy tax credit package proposed by the Senate Finance Committee could reduce the price of electric vehicles by as much as $12,500.
The new $259.5 billion clean energy tax credit package includes $31.6 billion in consumer incentives for electric vehicles. The package also entails an extension of the current EV tax incentives to include companies like General Motors and Tesla, which have both passed the 200,000 unit threshold for their EVs to qualify for tax breaks.
Under the new system, EV buyers would qualify for as much as $12,500 in tax credits if the car is assembled in the United States by a unionized workforce. The tax credit would only apply to vehicles with a sticker price of $80,000 or less, which would exclude some higher-end General Motors EVs like the GMC Hummer EV First Edition. The credits will also expire once half of the new vehicles sold in the United States are battery-electric or fuel cell.
The legislation received a 14-14 vote in the Senate Finance Committee on Wednesday, Bloomberg reports, however the Democrats can still advance the bill to the Senate floor. Senate Republicans have spoken out against the bill, saying the tax breaks are too costly and that EV incentives are unnecessary as consumers are already starting to buy more battery-electric vehicles.
GM CEO Mary Barra said recently that she’d like the Biden Administration to lift the 200,000 unit cap on EV tax incentives so as to not “punish first movers,” like itself and Tesla. This proposed clean energy tax credit package would give the automaker what it’s looking for, however EVs that it builds abroad would not qualify for any incentives. That means buyers of EVs built at the GM Ramos Arizpe plant in Mexico, which the automaker is investing $1 billion in to produce EVs, would not be able to receive any incentives for the vehicle purchase.
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Comments
Now you are talking! This will eliminate disgusting Europeans that have been taking advantage of American incompetence. Also the Crypto Fraud Elon.
Getting a tax rebate on a $79k vehicle?… How the Democrats have lost their way. Seems that type of rebate would greatly favor the wealthy over the average working class.. The rebate, whish would be a stupid use of tax payer monies, should go to any vehicle with a sticker price of closer to the average MSRP of a new vehicle, more like $35k.
should be $50K max.
It says it has to be assembled by a union work force.
The Democrats didn’t lose their way. They are literally funneling themselves tax money.
Trying to… if this gets passed I’ll be shocked, and disappointed in my representatives.
They represent themselves in Blue states.
Who’s the dope in the last picture?
I heard this will be ONLY for vehicles Produced in the USA and ONLY by Union workers.
Is that not correct?
What happened to buying American and Union because it was the best? Now progressives only buy American when it’s subsidized by hardworking tax payers. What a joke. Dems just keep throwing the working class under the Electric bus.
When was buying union the best?
Spoken for the truth. Bottom feeding left.
@h4cksaw
What are you even talking about? What does Politics have anything to do with this Plan?
Does it matter whether it was a Democrat President or a Republican President trying to save the American Car Companies and the American Union workers from the onslaught of upcoming competition?
We cannot allow Europe and more specifically China to become the Powerhouse of the Future in the Automotive Landscape. A President is supposed to protect its own first and foremost so I am not sure what upsets you exactly.
Last time I checked your so called stupid Progressives love Tesla as they are trying to combat Climate change that they keep arguing about but this plan doesn’t play favorites to Tesla at all. But it does favor Union American workers that ONLY work at Chrysler, Ford, and GM. Where exactly do you see the problem?
If other Automakers that produce vehicles on our shores to sell to to the American people want the Full credit, they have a decision to make….they can simply Unionize their workforce so it is an even Playing Field for everyone. It would be a win, win, win.
>> What does Politics have anything to do with this Plan?
There is no way you can be this dumb.
The plan specifically says it’s only for union shops. Surely you must realize that there are a lot of car plants in the US that are not union. In fact, the most successful EV company by a huge amount of sales is not union, but is American. Surely you must also realize that the union always sends money to one party in particular – the ones that came up with this plan. Shocking.
@Nate
The Union made cars get the FULL Rebates. American Built by Non union workforce will get $10,000 and All others get the $7500 Rebate meaning built outside of the USA.
So once again, what does Politics have anything to do with this? It is a way to keep our Big Three relevant in a new Automotive World that is currently dominated by Tesla specifically then China followed by Europe. Would you prefer that Chrysler, Ford, and GM go bye bye instead?
Who gives two Sh*ts what party someone prefers, you should want to save the American Companies and their workforce regardless of Political views and alliances.
As far as the NON Union made vehicles made in. the USA, those Foreign Automakers and Tesla themselves will need to make a decision now won’t they? They can keep using NON Union workers to built their cars but will lose out $2500 per EV sale for the next Decade. So it is up to them what they chose to do. As a GM fan this makes me very happy. They will have a huge advantage on their home Turf. Which is the way it should be. It’s really that simple.
But we all know this will never pass anyway as Both Political Parties only do what their HUGE donors tell them to do which is Big Oil.
“Under the new system, EV buyers would qualify for as much as $12,500 in tax credits if the car is assembled in the United States by a unionized workforce.”
So this bill would effectively force all EV makers to build their EVs in the USA to be able to compete in the American market. Companies will have to build new factories in the US to produce EVs in the US costing Billions of $$$ and pass that cost to the consumer, but the government will subsidize that plus more. So the increased cost will be passed to the consumer -> the government -> the taxpayer, Thus Americans as a group will pay more for EVs than they have to.
Also is there something wrong with a company treating their workers so well that the workers do not feel the need to unionize?
It’s called unfair trade policies brought to you by backroom deals made by politicians. How many gm plants are there in Japan?
I’m in if jacakass Joe can get it passed!
Nearly all these comments are highly politicized. Why? It’s hard enough to craft good public policy to get us off dino-fuel and resultant greenhouse gas, without all the looney politics.
I’d rather see rebates instead of tax credits. That way poor and lower middle class people will be able to afford EVs and get the full $12,500 credit even though they may not make enough money to take advantage of the tax credit.
They are politicized because instead of just giving a credit for buying an EV (to get people driving them), this plan intended to help fund the unions instead.
That’s an entirely political move.
Your comment is nothing more than leftist lunacy all by itself. In America we once had the freedom of choice to buy what we want. Many died for those rights in countless wars. Don’t bow down to communist style government.
@Jim Berry
Exactly. Everything is Politicized on this site now.
It is getting really old.
“Clean” and politics go hand in hand.
I’d rather see rebates instead of tax credits. That way poor and lower middle class people will be able to afford EVs and get the full $12,500 credit even though they may not make enough money to take advantage of the tax credit.
I agree with the new specifications and for the rebate instead of a tax credit. But I also expect that this will never apply for foreign electrics , even if assembled in the U.S. since the profits of those imports will leave the U.S.
So only the present three brands getting these rebates will be GM, Ford, and Tesla. Then the new U.S. brands will follow.
I thought Tesla was still non-union company. This is the democrats showing true colors, unionize or you don’t get any credits or funding.
I don’t have a problem with unions, I have a problem with policies giving them favor over a company that isn’t union. I have worked for great non-union companies that wouldn’t be the same if they unionized.
@cdnsolman
I like Tesla a lot obviously as I got aM3. I did not get a rebate nor has anyone the last what two to three years.
I have no problem with this Bill if it passes. If the full rebates were to be applied to Tesla as well, then no other Automaker will ever have the chance to catch up to them. Tesla would own the Auto Industry in this Country. If Tesla or any other Company wants the Full rebates it is as simple as just allowing their workers to Unionize. Some Companies will have a decision to make if this Bill passes as is.
Ford released the EV F150 at the same list price as gas.
Why do we need to borrow $ from China and our children to give ourselves free stuff?
Why give manufacturers an incentive raise list prices for EVs then have debt on US citizens offset it?
Where do people think all this $ is coming from and what to they think is going to happen? Are they thinking a small number of billionaires can somehow be taxed to the tune of trillions perv year?
15% interest like the 1970s will crush jobs, housing market, spike prices, kill the economy. Then everyone will wail about how unfair the logical outcome of our own actions are.
If this passes, Elon Musk, and Tesla will have to unionize to receive the credits, this will be very interesting!! I will be watching very closely.
@dwight Morgan
If this Bill passes, Tesla will get $10,000 Rebate on their vehicles.
EV Cars NOT built in the USA get $7,500
EV Cars Built in the USA but with NON Union Workers get $10,000
EV Cars Built in the USA but WITH Union Workers get the Full $12,500
Everything is a stupid waste of tax payer money lately…so why not this.
They can give them away free for all I care, just don’t use taxpayer money to fund government picks.
You mean just like they use our money right now to subsidize Big Oil and pretty much any other Special Interset Huge Lobby that gets these Politicians from both sides elected?
Government hands out money for so many things why would this bother you but currently handing Billions to Big Oil doesn’t? If we want to compete with Europe and mostly China, we need to convert to BEV’s or our Big Three will be left behind. Times are changing whether we agree with it or not and BEV’s are the Future. They are just trying to keep us competitive. I have no problem with this if it passes as is. It makes perfect sense actually.
EV Cars NOT built in the USA get $7,500
EV Cars Built in the USA but with NON Union Workers get $10,000
EV Cars Built in the USA but WITH Union Workers get the Full $12,500
This means that Chinese EV Automakers can’t just produce their vehicles cheaper in China and simply ship them over and get the Full rebate. That would flood our market with cheap priced vehicles that certain Bargain chasing customers would’t think twice about purchasing. Look at how Toyota, Nissan, Subaru, and Honda grew in this Country. Then Decades later Hyundai and Kia.
If we do not stay ahead of our Competition it will be over before it ever begins. Look at how our Big Three just literally gave up on the Sedan market because they could’t compete. I personally do not want to see our Big Three fail.
Actually Big Four now I guess as Tesla will become a Huge Auto Manufacturer and NONE of the Legacy Automakers took them seriously.
This new Automotive shift is now a Full Blown race and we cannot fall behind. Our Country and our workforce cannot afford to lose.
When is the volt guzzler tax coming to the BEV market? Had to pay gas guzzler tax on my performance vehicles, so pay a made up tax on performance electric vehicles that use excessive electricity to zap em.