Auto manufacturers including General Motors, Toyota Motor, Volkswagen and others are warning a $430 billion bill approved Sunday by the U.S. Senate will jeopardize U.S. electric-vehicle adoption targets for 2030.
The Alliance for Automotive Innovation’s chief executive, John Bozzella said, “Unfortunately, the EV tax credit requirements will make most vehicles immediately ineligible for the incentive,” and the bill, “will also jeopardize our collective target of 40-50% electric vehicle sales by 2030.”
The Alliance warned that most EVs will not qualify for the $7500 tax credit the bill offers. Many EV’s are not assembled in America, which will make many ineligible right from the start. Other restrictions that will disqualify other EVs include, using Chinese-made materials or parts.
Senator Joe Manchin, who pushed for the restrictions, said US EVs should not depend on foreign supply chains. Meanwhile Senator Debbie Stabenow of Michigan called the credit “unworkable.”
In the bill is also a $4,000 tax credit for buying used EVs, as well as billions in new funding to encourage US production facilities for EVs and $3 billion to fund the purchase of EVs and charging facilities for the US Postal Service.
The House will vote on the bill Friday.