Biden endorses electric vehicle tax credit

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President Joe Biden endorsed legislation introduced by U.S. Rep. Dan Kildee (D-MI) that would expand existing tax credits for electric vehicles during a visit to Michigan last week.

The legislation, developed with Sen. Debbie Stabenow (D-MI), would extend current tax credit legislation and add incentive for Americans to purchase vehicles made with union labor.

“My Build Back Better plan will boost our manufacturing capacity, investing in new and re-tooled facilities that employ American workers with good wages and benefits,” Biden said. “That includes grants to kickstart new battery and parts production. That includes purchasing incentives for families to buy clean, union-made vehicles like the ones championed by Debbie and Dan, in the Senate and the House.”

The bill would make consumers eligible for a $7,500 tax credit on qualifying electric vehicles for five years, with an extra $4,500 bonus if it is made by union workers, and an extra $500 bonus if the battery is made in America. After five years, only electric vehicles assembled in the U.S. would be eligible for the $7,500 credit, in addition to the other credits. The tax credit would be fully refundable and transferable at the time of purchase, and would not be applicable to any American making over $400,000.

“President Biden is right,” Kildee said. “Electric vehicles made by union workers, here in America, are the future of the automotive industry. The Biden-Kildee-Stabenow tax credit included in the Build Back Better budget will help to create good-paying Michigan union jobs and help combat the climate crisis. I will continue to work with President Biden and Senator Stabenow to ensure that electric vehicles are built in Michigan with union workers.”

The legislation is supported by the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW); American Federation of Labor and Congress of Industrial Organizations (AFL-CIO); Ford Motor Company; General Motors; Michigan League of Conservation Voters; Stellantis; DTE Energy; American Lung Association and others.