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    Toyota, Honda urge Congress to reject expanded tax incentive that would benefit Ford, GM, Stellantis – TechCrunch

    Toyota and Honda are calling on legislators to dismiss legislation to expand tax incentives for union-made electric vehicles manufactured in the United States.

    The proposal Toyota accused of being “blatantly biased” and “exorbitant” in a letter to Congress would extend federal tax incentives from $ 7,500 to $ 12,500 for unions and domestic cars. .. Vehicles with batteries manufactured in the United States are eligible for an additional $ 500. If the bill is passed, vehicles from automakers such as Toyota, Honda and Tesla will be excluded from extended credits and all Detroit “Big Three” makers will be eligible.

    “Current [bill] The draft is secondary to the goal of accelerating the deployment of electric vehicles by discriminating on the basis of the choice not to unite U.S. car workers, “Toyota said in a letter to lawmakers. .. “This is unfair and wrong. Please reject this blatantly biased proposal.”

    Automakers further said the bill would support wealthy people, those who may not need public funds to buy an electric car. The bill has a means test provision that limits access to credits to individuals with adjusted incomes of up to $ 400,000 or households of up to $ 800,000. Whether to set an income cap and what that income cap should be was a major issue between Democrats and Republicans in Congress.

    The bill was also criticized by Tesla CEO Elon Musk. “I wrote it on Twitter when a Ford / UAW lobbyist was making an electric car in Mexico. It’s not clear how this will help American taxpayers.”

    This will be the first such increase to EV tax credits of up to $ 7,500 since it came into effect more than a decade ago. The bill also removes the provision to exempt OEM cars that have sold more than 200,000 EVs from credit. This means that General Motors and Tesla cars will be covered again.

    The bill has been praised by three major automakers with a workforce represented by GM, Ford Motor Company, Stellantis and the United Auto Workers. The UAW also supports the proposal.

    It is being reviewed on Tuesday by the House Ways and Means Committee. The expanded credit is just one part of a large $ 3.5 trillion budget adjustment bill currently under discussion in Congress, including a number of socially progressive proposals for education, health care and climate change. It is.

    Toyota, Honda urge Congress to reject expanded tax incentive that would benefit Ford, GM, Stellantis – TechCrunch Source link Toyota, Honda urge Congress to reject expanded tax incentive that would benefit Ford, GM, Stellantis – TechCrunch

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