The Biden Administration has proposed a new incentive plan that will offer point-of-sale rebates on electric vehicles and even steeper incentives on EVs built in a unionized facility.
The House Ways and Means Committee introduced a new $3.5 trillion social safety net and climate policy legislation Friday that would implement a $7,500 rebate on EVs for five years. An additional $4,500 would be available to American-made EVs assembled in union facilities, while a further $500 would be available if the vehicle had an American-made battery pack. After the five years is up, the $7,500 incentive will only apply to vehicles made in the U.S., although the American-made vehicle and battery incentives would remain the same.
The EV incentive portion of the legislation was led by U.S. Rep. Dan Kildee (D-Flint) and Senator Debbie Stabenow. The UAW released a lengthy statement Monday in support of the Biden Administration backed bill, which also calls for a top corporate tax rate of 26.5 percent and an individual tax rate of 39.6 percent, referring to it as the “Kildee/Stabenow Made in America Provision.”
“I commend Representative Kildee for crafting legislation to protect and create more good paying union jobs for years to come,” UAW President Ray Curry said in the statement. “Rep. Kildee’s provision would go a long way in supporting good paying union jobs in EV auto sector that President Biden has championed.”
“For too long U.S. tax credits meant to create good paying American jobs have subsidized products not made in the United States or at substandard wages,” he added. “Today’s Amendment continues the work of Sen. Stabenow’s effort to make sure those are good paying jobs right here at home.”
The plan is designed to promote the adoption of all EVs early on and then transition to support American-made EVs specifically after five years, Kildee said.
“We think that gives everybody ample time to understand that when it comes to the American tax dollar, we’re not going to do this in a way that is so disruptive to the market,” the Flint representative said, as quoted by The Detroit News.
The EV incentives would only be available with EVs priced under a certain level. Sedans under $55,000 and vans under $54,000 would qualify, while SUVs under $69,000 and pickups under $74,000 would also fall in line. Several current GM EVs would therefore qualify, including the Chevy Bolt EV, Chevy Bolt EUV and Cadillac Lyriq. The GMC Hummer EV would not be eligible.
The Biden Administration also hopes to drive EV adoption through its $1 trillion bipartisan infrastructure bill, which will set aside $7.5 billion to set up a national network of charging stations along U.S. highways.
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Comments
In place of spending more money on EV cars that will be seeing cheaper batteries soon how about upgrading the electrical grid where needed and tax incentives on building charging stations.
The government wants to force this they had better play a well rounded hand or it will look as organized as a withdrawal of Afghanistan.
Voting for Joe Biden has been the single biggest regret I’ve had in any election. From now on I’ll be participating in the RNC for primaries. The Democratic National Convention is comprised of 17% superdelegates. The RNC is only around 7%, therefore a vote matters more in their primary. Superdelegates and special interest are a problem on both sides of the aisle, but it’s now clear to me which party is catering to more special interests groups.
h4cksaw
What do you find to be the most compelling aspect of the Republican Party.
A) completely ignoring election results
B) being a crybaby about vaccine and mask mandates
C) dressing like a freak and storming the Capital
D)forcing women to have the babies of their rapist.
Currently, I don’t find the Republicans a “compelling” party, I just find the Democrats to offer less representation. Do you not recall the 2016 DNC? I just explained the benefits of voting in the RNC. An argument could also be made that by voting in the RNC it would force the Democrats to nominate more competitive candidates, not party built puppets who are rewarded for blind loyalty.
Cars & Light Trucks account for 15% of our energy usage. The 2 million EVs on the road today are only consuming 0.002% of our electricity. When Biden leaves office in 2009. The most positive sales projections have EVs at 10% of all vehicles on the road. Consuming less than 3% of our Electricity.
Also no one thought the Afghani Military would collapse faster than Trump’s boarder wall. And no matter how messy the withdrawal. It’s still a much than still being in Afghanistan.
You don’t get to speak for the 13 service members who were killed there. You constantly run your mouth and try to prove a point I don’t comment on here ever but you just don’t know when to shut up. You bring trump into everything do you not realize he lost and we have a new president who is in charge?
Ryan
Cuck off
Like I said all’s you do is run your mouth constantly. But you have no clue what you are talking about typical young misguided idiot.
Peter my friend I tend to agree with most of the things you say but I’m sorry the fact is they did think the Afghan military would collapse there are numerous reports saying this. They knew this months ago when Joe was saying there was no way the taliban would take over like they did they had the intel then to say it would happen. Also people are not upset we left Afghanistan they are upset at how Biden handled it that is the issue. Trumps plan had certain measures in place that if the taliban did not follow the deal was off. Like for example 2 days after the deal was made the taliban attacked Afghan soldiers the response was trump ordered air strikes against them this was literally 48 hours after the deal was made if you want a source to prove this the bbc wrote a very lengthy article about this last year. Also we need a border wall or something down there illegal immigration needs to stop I am vaccinated myself and it bothers me very much they are not requiring them to be vaccinated or even testing them before letting them in but requiring US citizens to be vaccinated I’m sorry but this makes no sense. I am a democrat and this was the first election I voted as an independent because neither Joe or trump were good choices in my opinion. You can tell me whatever you want but I honestly do not believe you can truthfully say you think Biden is doing a good job and as far as saying he is better then trump that doesn’t matter because trump is not president Biden is. These politicians need to do what is best for the country period if republicans have a good idea then it should happen not be voted down because it’s the other parties idea same as democrats they have a good idea it should happen not be stopped because they are democrats this is why nothing gets done in our country. Also hating everything a president does because you do not like them is childish did I vote for trump no but did he have good ideas and do certain things that were good for the country yes he did at some point people have to start supporting good ideas no matter who makes them. Have a good week.
Your right, Biden left office- and his mind- in 2009.
Wait until Charging stations are Taxed
They are taxed once when purchased. No one dares to tax electricity.
Yeah? If you did see how much New York City taxes electricity you would get gray hair.
Something’s going to be taxed- and heavily. You cannot take out billions of revenue from fuel taxes that go to maintain our roads without having a replacement source of revenue.
EV with exchangeable batteries should get bigger tax credit. That would give EV manufacturers an incentive to develop exchangeable batteries. Plus we would get additional manufacturers of batteries, which would result in more competition and lower prices.
Includes free fire extinguisher. So many cars have been flooded with storms this year. Imagine if an EV gets flooded while charging.
The battery packs are waterproofed. There are videos of Teslas and Rivians traversing through deep water and they handled it.
Go home Toyota , Good boy Biden says 👏👏👏👏👏👏👏👏👏👏👏👏👏👏
now you know why gm stock price “popped” on friday. it wasn’t because of anything happening in detroit. it was what was happening in dc that mattered.
for all the talk of disruptive technology, a lot of free money is required to get people even consider buying.
sorry joe, my next car will be a hybrid. current battery tech is still half-baked.
Hybrids today are a decent choice. There are finally models that can recoup the higher MSRP that come with hybrids.
As long as that hybrid isn’t a foreign brand.
as long as one of the domestics offers the best hybrid in its segment, i’ll buy it.
Ford does. I have a 2014 Fusion Hybrid which gives me up to 54 MPG and it only needs a once a yesr oil change to keep the engine warranty. Everything else is still factory original. Now they sell more than seven hybrids and an electric Mustang.
GM stock up another 3% today
yay!!! gm’s ev bet hangs on the free money coming out of dc. sounds like a recipe for long term prosperity.
Ahh yes, let’s give back money to the well off for buying a $60k vehicle. A plan only crooked, big business Democrats could love.
As many have already said… It’s time to invest in infrastructure and sustainability, not propping up a tech that’s arguably not all the better for the environment and only 5% of educated US consumers actually want.
Speaking of actual sustainability… Where’s the federal funding for renewable to hydrogen research, or is there not enough profit margin for Nancy Pelosi Inc. in that industry yet?
I agree with that bill as long as the EV that was assembled in the U.S. is also a U.S brand. I will not agree to give a single penny to any foreign brand that tries to beat the law by building factories here, then those dollars go to their foreign banks!
@Raymond J Ramirez
Europe and China give rebates to Foreign Automakers. The whole point (if this passes which I doubt) is to convert ICE owners to BEV’s.
The Bill for the first five years is $7500 to every BEV vehicle and if made by Union workers in the USA (basically Chrysler, Ford, and GM only) they get $12,500. Then the next five years is ONLY for BEV’s made in the USA.
This Bill provides Five key benefits.
One: Helps Consumers switch to BEV’s much quicker
Two: Allows NON US Factory vehicles to get the Rebate for first Five years and then make that Automaker make a Decision about Future Car Programs to be made in the USA after the first Five years have passed.
Three: Keeps and most likely creates more jobs in the USA. Remember you also get $500 if 50% of the Battery is manufactured in the USA.
Four: Provides Chrysler, Ford, and GM more of an opportunity to stay alive in the switch to BEV’s (This Bill was obviously written by the Original Big Three….We now know why Tesla wasn’t invited to the WH HAHA
Five: Maybe the most important thing….allows ALL Automakers a chance to not go Broke and for Tesla to build such a lead that it basically becomes almost impossible for the Legacy OEM’s to ever catch up. Imagine giving Tesla vehicles $12,500 or hell even the 10K that was being talked about a couple of months ago.
Lets All Remember that we are trying to Save our Legacy Automakers in this Country during this pivital conversion. China and Europe already have converted to Strict BEV deadlines. So those Automakers are way ahead of Chrysler, Ford, and GM.
But like I said, I doubt this passes….makes too much sense and Big Oil will never allow these Corrupt Politicians (Both Sides) to go against their interests. I mean they get HUGE Donations by Big Oil for a reason.
Old Joe last gasp for Looney Left agendas before leaving office in ’24 will fortunately backfire. I’m an EV supporter but let the people choose, no better than whacky Right Wingers.
that is your hard earned income tax $$$ being used to buy votes of the do gooders. i would guess 1/2 the people who are pushing for EVs don’t even drive let alone own a car.
Or the are idiot politicians that drive around in Suburbans and hop on carbon spewing private jets to go to another destination and preach to us that we need to curb global warming.
Hyundai is currently recalling and replacing the batteries on it’s electric cars. I think ur going to see a lot more of this kind of thing on electric cars as they see what really happens to theses cars in real world situations.
Rebates for “rich” people. I don’t see an income test proposed. Feel good, buying votes. Find an American hybrid or PHEV. Not GM, Stellantis, Jeep, Dodge, is it American anymore, maybe Ford. Is it assembled in the good ole USA?
This bill wont pass. Some dems don’t support it.
Not a fan of EVs.
Not a fan of this Administration.
And what will they give you when your new EV suddenly decides to combust?
Still wouldn’t buy one!
I keep hearing EV’s are cheaper than ICE cars when factoring in TCO. So, why would they need incentives? Seems like people should be buying them because they are cheaper. What, they aren’t? No, don’t say. And that is with the already roughly 10K per car EV’s collect in carbon credits behind the scenes. When everyone has to buy an EV, who is going to be paying for the carbon credits?
Are the Administration Wizards factoring in the amount of lost gasoline taxes to the EV’s and hybrids.
Then becomes more than $12,500.
And that is helping the poor working person how?
I pay a $250 a year EV Tax in my State.
The Government will be just fine with the EV Transition.
Which state is that? Highest I found was GA at 200/yr. CA was 100/yr indexed to inflation. In CA it is still quite the deal. For a ICE car getting 25MPG driving 10k miles/yr, at the CA gas tax rate of .66 per gallon, that works out to 264. In GA, the ICE is probably cheaper, gas tax has to be cheaper in GA than CA. I thought CA also gives you the EV can drive in the HOV lane advantage too, practically priceless.
@mkavt
The Fee is $200 a year. I meant to say over 250 with the Sticker which prices go up every year. I think they’re like $70 now. I will find out next month when I renew.
At $.66 per gal tax in California, $250. equates to about 9500 miles per year driven at 25 mpg (which is a high estimate).
I believe that is far below the average citizen’s annual mileage in California.
I suspect that is half the annual rate.
That equates to a Gas Tax Loss for our poor benevelant State coffers.
$40K EVs are $20K cars with a $20K fuel tank (battery).