The EV tax credit proposal — championed by Michigan Sen. Debbie Stabenow and Rep. Dan Kildee, each Democrats, but opposed by Manchin — would boost buyer tax credits to as substantially as $12,500 for EVs assembled in a manufacturing unit represented by a labor union with U.S.-produced batteries.
Today, people can obtain a tax credit rating of up to $7,500, but these credits begin to phase out at the time an automaker sells more than 200,000 EVs — a threshold now achieved by Common Motors and Tesla. The proposed tax credit rating eliminates the cap, but following 5 years, only EVs assembled in the U.S. would be eligible for the $7,500 base credit.
“The EV incentives — which we take into account a pretty important piece of all this — are in limbo, and we really don’t know wherever that is likely to fall out,” stated Dan Ryan, vice president of government and general public affairs at Mazda North American Operations. “And then you have the enhancements for UAW- or U.S.-created on major of that, which are also quite controversial and surely anything we’re not on board with.”