Auto company CEOs push to lift electric vehicle tax credit cap

The CEOs of General Motors, Ford Motor, Toyota Motor North America and Chrysler’s parent company Stellantis are lobbying Congress to increase the federal government’s limit on the number of vehicles eligible for a tax credit, according to a news report. letter.

Monday’s letter from leaders such as General Motors’ Mary Barra, Ford’s Jim Farley, Stellantis’ Carlos Tavares and Toyota North America’s Tetsuo Ogawa called on Congress to lift the electric vehicle tax credit limit from $7,500. $, claiming that zero-emission vehicles cost more to produce.

The letter was first reported by Reuters.

“We ask that the per-[automaker] cap be removed, with a sunset date set at a time when the EV market is more mature,” the CEOs wrote.

The CEOs also pledged to collectively invest more than $170 billion by 2030 to accelerate the sale and production of electric vehicles.

Currently, the consumer tax credit ends after automakers have sold 200,000 vehicles, a threshold that GM and Tesla have already reached, Reuters noted.

While Sen. Joe Manchin (DW.Va.) said it would be “ridiculous” to seek tax credits for electric vehicles, Democratic lawmakers have considered reviving parts of President Biden’s Build Back Better plan , including tax credits for electric vehicles with the aim of making roads more environmentally friendly.

The biggest package, which never passed in the Senate due to Manchin’s lack of support, would have increased the tax refund by $7,500 for consumers who bought electric vehicles at a $12,500 discount as long as cars were made with union labor and a domestic component. rooms.

“There’s a lot of promise with electric vehicle tax credits, and I think that’s still on the table,” Rep. Haley Stevens (D-Mich.) previously said.

“My vision on this would be to have a strong use of our tax code to incentivize, strengthen and support R&D initiatives,” Stevens added. “I don’t think it’s all in the tax code, but there’s definitely a lot of potential there.”

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