The US House Ways and Means Committee has approved legislation which would expand tax credits for the purchase of American-made electric vehicles (EV), Kallanish understands.

According to a statement by US Representative Dan Kildee (Democrat-Michigan), the committee has approved his legislation to expand EV tax credits as part of the budget reconciliation for President Joe Biden's Build Back Better plan.

Representative Kilgee's legislation would increase consumer incentives for the purchase of union-made EVs which are assembled domestically. Currently, US consumers are eligible to receive up to a $7,500 tax credit for the purchase of eligible EVs. The new legislation would increase that to $12,500 for domestic, union-produced vehicles. This has been jeered by Tesla, Toyota, and Honda, which use non-union workforces (see Kallanish passim).

“As a country, we either let China continue to dominate the production of electric vehicles, or we can make strategic investments now that will result in American workers and union labor making these vehicles here in the United States...Electric vehicles are a win-win when it comes to protecting our planet from pollution and growing our economy,” explains US Rep. Kildee.

Under Representative Kilgee's legislation, tax credits for the purchase of EVs will only be applicable for EVs assembled in the US after five years.

"With the partnership of our federal government, I know our workers, manufacturers, and suppliers are going to lead the charge on producing electric vehicles. Today’s passage of our consumer rebate shows our commitment to American innovation and American jobs," adds Senator Stabenow (Democrat-Michigan).