A number of automakers are urging Congress to lift the $ 7,500 tax credit limit on electric vehicles.
A letter from North American leaders General Motors, Ford, Stellantis and Toyota asked Congress to lift the current restriction, which means the $ 7,500 tax credit will be phased out after the manufacturer sells more than 200,000 EVs. Mary Barra, Jim Farley, Carlos Tavares and Tetsuo Ogawa said the rise in car prices would increase the importance of credit.
Also read: Biden administration proposes new electric charge standards to make it easier for all drivers to use EVs
“We (the automaker) ask you to remove the cover, the sunset will be set at the time of maturity of the EV market,” the letter reads. “Recent economic pressures and supply chain constraints will increase the cost of producing electric vehicles, which in turn will put pressure on consumers’ prices.”
President Joe Biden has previously proposed raising the EV tax credit to $ 12,500, but the rule that only cars built on U.S. trade union sites will benefit from the $ 4,500 incentive has caused controversy. The president also backed a 30 percent loan for commercial electric vehicles and a $ 4,000 tax credit for used electric vehicles.
Not all Democrats support extending the tax credit. West Virginia Sen. Joe Manchin, for example, says it doesn’t make sense.
In April, he said, “Now there is a waiting list for electric cars that cost $ 4.” “But they still want us to lend them $ 5,000 or $ 7,000 or $ 12,000 to buy electric cars.” It doesn’t make sense to me. If we can’t produce enough for the people who want it and we will still pay them to get it – I think it’s ridiculous. “
Tesla and General Motors have already reached the 200,000 mark, and their cars are not available through a $ 7,500 tax credit. Both Ford and Toyota are expected to reach the 200,000 mark this year. Automatic news reports.