U.S. Rep. Dan Kildee (D-MI), chief deputy whip of the House Democratic Caucus, applauded the U.S. House Ways and Means Committee’s passage of his legislation to expand tax credits for the middle class when purchasing electric vehicles.
Part of President Joe Biden’s Build Back Better bill, Kildee’s legislation would expand existing electric vehicle consumer tax credits and add incentives for purchasing union-made vehicles. After five years, the tax credit would only apply to electric vehicles made in America. Currently, consumers may get up to $7,500 in tax credits if they purchase an eligible electric vehicle, however, those tax credits phase out on each make of vehicle as the automaker sells more than 200,000 vehicles. Several automakers have already exceeded the 200,000 cap.
“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,” Congressman Kildee said. “Electric vehicles are a win-win when it comes to protecting our planet from pollution and growing our economy.”
Kildee said his legislation would help working class and middle class Americans buy more electric vehicles, while ensuring that luxury cars don’t qualify for the tax credits.
The legislation would make the tax credit fully refundable and transferable when the consumer purchases the vehicle, instead of requiring consumers to claim the tax credit on their annual tax return. The legislation also ensures no American making over $400,000 would be eligible for the tax credit, and would create a price limit for vehicles eligible for the credit.
The legislation is supported by The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), the AFL-CIO, the Ford Motor Company, General Motors, Stellantis, Michigan League of Conservation Voters, ITC Holdings, DTE Energy, Consumers Energy, American Lung Association, BlueGreen Alliance, League of Conservation Voters, Environmental Defense Action Fund, Natural Resources Defense Council Action Fund, The Sierra Club, Edison Electric Institute (EEI)
UAW President Ray Curry said, “Congressman 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.”