WASHINGTON, Dec 19 – The White House bid to dramatically increase electricity car debt was hit hard on Sunday when a key Senate Democrat said it would not support the $ 1.75 trillion domestic investment bill.
Joe Manchin of West Virginia appeared to be seriously damaging to President Joe Biden’s home policy bill, known as Build Back Better, which also aims to increase social safety nets and tackle climate change.
The bill includes increasing the current $ 7,500 EV tax credit to $ 12,500 on US-produced cars and creating a credit of up to $ 4,000 for used cars. The bill will also make General Motors (GM.N) and Tesla Inc (TSLA.O) eligible for tax credits after reaching a limit of 200,000 vehicles on the existing $ 7,500.
The bill also covers a 30% bill for electric vehicles.
GM and Ford are both launching electric trucks in 2022 and new tax bills could be needed to meet initial sales targets, as well as meet growing car export requirements.
Biden wants 50% of new US vehicles to become electric hybrid or electric plug-in by 2030. Managers are expected to soon finalize strict rules for the release of new cars by 2026 this week, say car manufacturers.
Manchin is contesting a $ 4,500 tax credit for cars made by the union as part of a $ 12,500 proposal. He called the union debt “wrong” and “not American.”
EV tax debt is backed by Biden, a multi-party Democrats and United Auto Workers (UAW) and will equally benefit Carroit’s Big Three car – GM, Ford Motor Co (FN) and Chrysler parent Stellantis NV – which includes Their US made in the US. vehicles on plant represented by the union.
Tesla and foreign car manufacturers operating in the United States do not have unions representing conference workers and many have opposed UAW’s efforts to organize US plants.
Toyota Motor Corp (7203.T), with a factory in West Virginia but its U.S. employees. non-union members, claiming a union debt of $ 4,500.
Toyota announced this month that it will build the $ 1.29 billion battery industry in North Carolina, while the launch EV Rivian Automotive (RIVN.O) said on Thursday it would build a $ 5 billion plant in Georgia.
The cars will need to be manufactured in the United States from 2027 to qualify for any $ 12,500 credit, including $ 500 worth of batteries made in the U.S. It has faced criticism from Canada, Mexico, Japan and the European Union.