BlueGreen Alliance Applauds Key Auto Sector Manufacturing Provision in Ways and Means Funding Package as Committee Begins Markup
The House Ways and Means Committee released the details of its budget reconciliation package late Friday and is expected to meet to finalize them later this week. The package replaces the former 30D consumer tax credit for electric vehicles (EV) with a new 36C refundable tax credit that provides an up to $12,500 credit for vehicles assembled in the U.S., with at least 50% domestic content, and with a collective bargaining agreement that protects labor standards and workers’ rights. The new credit would also place a cap on the cost of the vehicle and the income of the consumer, eligible for the credit, and make the credit available at point of sale. The package also includes a used EV tax credit. In response to the committee tax plan, the BlueGreen Alliance released the following statement from Director of Manufacturing and Advanced Transportation Zoe Lipman:
“Building the next generation of vehicles and technology here—and creating more, better jobs in the manufacturing sector—is key to ensuring that communities and workers across the U.S. reap the employment benefits and economic revitalization that should accompany the sector-wide transition to EVs.
“We are greatly encouraged to see strong labor and domestic manufacturing standards—as well as improved equity provisions—attached to this credit. The important 30D/36C tax credit provision will continue to play a key role in shaping the growth of the EV market in the U.S., so it is fitting that these credits provide incentives for auto companies to invest to build the vehicles and technology of the future here and do right by the workers that build them. Additionally, continued incentives for EVs will play a key role in reducing both greenhouse gas emissions and dangerous air pollution.
“We urge the committee to retain and strengthen these and other manufacturing provisions throughout the budget reconciliation process.”