WASHINGTON, Oct 12 (Businesshala) – More than 100 US House lawmakers on Tuesday urged Speaker Nancy Pelosi to place a $4,500 tax credit incentive for union-built electric vehicles (EVs) in a massive spending bill.
In a letter seen by Businesshala, Democrats urged Pelosi to retain the credit backed by the United Auto Workers union and the AFL-CIO. The $4,500 credit will give a significant boost to Detroit’s three automakers — General Motors Co. (GM.N), Ford Motor Co. (FN) and Chrysler-parent Stelantis.
“We strongly support leveling the playing field between the non-union and unionized workforce by including an additional $4,500 incentive to support unionized EVs,” the letter said.
Tesla Inc. (TSLA.o) and foreign automakers do not have unions representing assembly workers in the United States and many have struggled with efforts to organize US plants.
Last month, 12 major foreign automakers, including Toyota Motor Corp (7203.T), Volkswagen AG (VOWG_p.DE), Honda Motor (7267.T), Hyundai Motor (005380.KS) and Nissan Motor (7201.T), Urged Democrats to reject the proposed $4,500 tax stimulus.
A House panel last month approved legislation to increase EV credits to $12,500 per vehicle, which includes $4,500 for union-built vehicles and $500 for US-made batteries.
Foreign automakers said the proposal “would unfairly harm American workers who have chosen not to join a union and produce more than half of all vehicles in the United States and the vast majority of American-made EVs.” “
The tax credits, which are part of a proposed $3.5 trillion spending bill, would cost $15.6 billion over 10 years.
The EV proposal phases out tax credits after automakers hit 200,000 electric vehicles sold, which would re-qualify Tesla as well as GM, though Tesla won’t get the $4,500 credit .
Tesla Chief Executive Elon Musk suggested on Twitter last month that the EV proposal was “written by a Ford/UAW lobbyist… it’s unclear how it serves American taxpayers.”