Democratic Proposal Could Make 70% Of Electric Vehicles Ineligible For Tax Credit

U.S. Automakers expressed concern Friday that under a recent Democratic proposal, most EV models available for purchase in the United States would be ineligible for a $7500 tax credit.   

“As currently written, the material, component and assembly requirements in the Clean Vehicle Credit will immediately reduce (by a lot) the number of qualifying electric vehicles available to consumers for purchase with the tax credit,” John Bozzella, head of the Alliance for Automotive Innovation, wrote Friday.  

According to Bozzella, 70% of the 72 EVs available for purchase in the United States would “immediately become ineligible when the bill passes and none would qualify for the full credit when additional sourcing requirements go into effect.”

The Senate Climate Package tax credit, proposed by Democratic Senators Chuck Schumer and Joe Manchin, would raise the requirements for the percentage of battery components originating from North America, and after 2023, it would prohibit batteries made with any Chinese components, Reuters reported. 

Follow us

Read our latest news on any of these social networks!

Get latest news delivered daily!

We will send you breaking news right to your inbox


Have a tip? Let us know!

Recent Articles

  • by:
  • Source: AP News
  • 03/14/2025
...
Trump administration asks Supreme Court to partly allow birthright citizenship restrictions

The Trump administration is asking the Supreme Court to allow restrictions on birthright citizenship to partly take effect while legal fights play out.

  • by:
  • Source: Fox News
  • 03/14/2025
...
Chuck Schumer will vote to keep government open: 'For Donald Trump, a shutdown would be a gift'

Senate Minority Leader Chuck Schumer, D-N.Y., says he will vote to keep the government open, warning that a shutdown has worse consequences for Americans and would only empower President Donald Trump and Elon Musk further.

...
More than 2,000 laid off at Johns Hopkins University amid Trump budget cuts

Johns Hopkins University announced Thursday it's laying off over 2,000 employees amid budget cuts made by the Trump administration.

...
ICE: US Immigration Detention Maxed at 47.6K Detainees

U.S. immigration detention is filled to capacity at 47,600 detainees, a senior U.S. Immigration and Customs Enforcement official said on a call with reporters on Wednesday, adding that the Trump administration was seeking more bed space.