Electric Vehicles Could Get Incentives Up to $12,500, According to Democrats' New Proposal

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Electric vehicles in the U.S. could get incentives up to $12,500 according to a new Democratic proposal. They want to include a significant new incentive to buy electric vehicles in their $3.5 trillion social spending bill.

The new plan was published on September 10 by the House of Representatives' Methods and Means Committee, reported The Detroit News. The legislation will introduce $7,500 discounts on electric vehicles at the point of sale for five years. An additional $4,500 will be paid for vehicles assembled at union-participating plants. Cars that use a US-made battery will receive an additional $500. For the next five years thereafter, the $7,500 base credit will only apply to US-made electric vehicles, but the other two incentives will remain the same.

“We want to make sure that people who make good wages, support their families and contribute those wages and benefits in their community are the primary beneficiaries of this,” said Rep. Dan Kildee, D-Flint Township, who serves on the Ways and Means Committee and has been pushing the legislation in the House.

Incentive-eligible vehicles include sedans under $55,000, vans under $54,000, SUVs under $69,000, and pick-up trucks under $74,000. Individuals with an adjusted gross income of up to $400,000, heads of households making up to $600,000, and joint filers making up to $800,000.

The House Ways and Means Committee will vote on whether to include the consumer credit legislation in the reconciliation bill next week.

© 2021, Eva Fox | Tesmanian. All rights reserved.

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