The council’s current plan calls for an extension of the $ 7,500 tax credit for the purchase of electric vehicles, and an additional $ 4,500 credit for electric vehicles built by trade unions in the US.

Senator Lindsay Graham may have made the mistake of saying, “We will go from 50 cars for $ 7,500 to two, two Chevy cars.”

Graham went on to cite the $ 4,500 credit, saying: “Under construction, the largest portion of the $ 4,500 will only be available to companies that hire union workers.” Graham explained it more accurately in a press release a day earlier. But his comments in the press release may confuse the audience, and so here, to be clear, we will explain the intended explanation.

Graham, November 4 Under the current law, $ 7,500 tax credit is available to all those who make these cars, as well as 50 different cars made by companies around the world. BMW builds cars in South Carolina, and Volkswagen also plans to power its ships, and tax credit is an incentive to do so. Well, what did you do in the house? You have changed your electric vehicle tax credit. So from 50 vehicles worth $ 7,500 to two, two Chevy cars. And why do you get tax credit? Because the plants that make these cars are integrated. If you really care about the environment, why not take all these companies out of the game and reduce the number of electric vehicles from different sources to two? …

Unions have the right to organize and that is part of the United States. But House Democrats are making it clear that the large portion of the $ 4,500 tax credit for electric vehicles under construction will only be eligible for companies that hire union workers. That’s bad for the environment and bad for business and I don’t think it’s legal.

The first EVX credits were introduced in 2008 by President George W. Bush and expanded in 2009 by President Barack Obama. The policy allows taxpayers to get up to $ 7,500 in credit for purchasing electric vehicles, and individuals must pay at least that much in the same year.

The policy limits each manufacturer to up to 200,000 vehicles with a full tax deduction. GM, mainly with the Chevy Bolt, and Tesla were the first to reach the 200,000 mark, and tax credits were reduced in 2019 and eventually terminated by 2020 for those vehicles.

Although Despite some congressional support for extending tax credits in 2019, then-President Donald Trump thwarted that plan.

“Like our policy, we want to stop all these subsidies,” said Larry Cudlow, then White House economic adviser.

Contrary to Graham’s claims, the current House Draft Tax Credit extends $ 7,500 to a five-year extension of the purchase of electric cars anywhere, either with or without a union (see Section 136401). And there will be refundable tax credits, which means that buyers of electric vehicles will receive the tax credit even if they pay less than the tax credit that year.

This means that Tesla, the largest electric vehicle manufacturer in the United States, uses non-union workers and their cars will be eligible for a $ 7,500 credit again. In fact, Tesla told us in a telephone interview that “they seem to be raising the price of their cars by waiting for this pass.”

The Senate version of the EV Plan initially proposed additional tax credit – more than $ 7,500 – basically $ 2,500 for buyers of electric vehicles manufactured in the U.S. and another $ 2,500 for trade-owned vehicles in the U.S., up to a maximum of $ 12,500 for U.S.-owned electric vehicles. The current version of the house, however, is an additional $ 4,500 for cooperative vehicles in the United States only and another $ 500 for locally sourced content (not made by union staff).

Electric vehicles manufactured in states such as Graham South Carolina and non-cooperative carriers do not qualify for an additional $ 4,500 tax credit.

“So BMW and Volkswagen came to South Carolina to build a car and if they built an electric car, they would be denied this tax credit because of their work ethic,” Graham said. “This is disgusting politics, bad economics, and harmful to the environment. And if that bill comes here [to the Senate]We will fix this.

Graham’s spokesman, Kevin Bishop, said the senator simply “did not finish his speech.”

In a press statement issued a day before Pope Graham’s press release, Graham stated:More $ 4,500 tax credit for those who buy unused electric vehicles ”(emphasis is on us).

Graham is right: Only two Chevy cars are currently eligible for $ 4,500 in additional tax credit.

Jessica Caldwell, Edmonds Awareness Director, is right when she says: , He told us.

The two cars, the Chevy Bolt EV and EUV, were manufactured by union workers in Orion, Michigan.

But many more vehicles will soon be available.

Among them are the Ford F-150 Lightning, the GMC Hammer EV, and the Chevrolet Silladado, all to be built by UWW staff in Michigan, and the Cadillac Lyriq (and probably the soon-to-be-launched Akura model) by UAW. In Tennessee, ”Halvarson wrote in August. “The Jeep does not yet have a fully electric model but the Wrangler 4xe plug-in hybrid is being built in Ohio.”

And the idea is to encourage car manufacturers to build more electric vehicles in the United States using union workers.

“Automotive decisions are based on this incentive, so Ford and others are likely to be at a meeting with Ford and others at EV to qualify for the credit,” Shannon Baker-Branterter, left-leaning American Center for Climate Policy, told FactCheck.org. He said in an email.

“The supply is very thin right now,” Halverson said. “It looks like a little bit of chicken and eggs.”

Still, the House plan makes some electric car brands eligible for an additional $ 4,500 in tax credit, including those made with co-workers in the US.

That, for now, eliminates the Mexican-owned Mustang Mach-E and the Nissan Leaf, made by unofficial workers in Tennessee. Volkswagen, Hyundai, Kia and Volvo all plan to build electric vehicles in the US, but probably with union workers, Halvorson said.

In a letter to dozens of delegates to Council Speaker Nancy Pelosi on September 30 International car manufacturers in the United States He praised the extension of the $ 7,500 tax credit for electric vehicles.Discriminatory $ 4,500 additional tax credit only to buyers of organized EVs.

The letter stated: “This is unfairly affecting more than half of the vehicles and most American manufacturers of American-made EVs who have chosen not to join the union.” The proposal for cars eligible for full tax incentives “significantly restricts user choice”;It has forced many to reconsider and purchase traditional gas-powered vehicles.

On October 29, ambassadors from more than two dozen automotive countries to congressional leaders from both sides said:If this law is implemented, it violates international trade rules, harms hard-working Americans employed by these vehicles, and undermines the efforts of these vehicles to expand the USV consumer market to achieve the administration’s climate goals.

House Democrats hope to rebuild the plan by Nov. 15, and the EV tax credit plan could be amended earlier. If so, go to the Senate, Graham and others may want to change your EV credit plan. We do not take any position on the $ 4,500 additional tax credit for electric cars made by union workers in the US, but Graham made a misleading suggestion that general tax credit would only be available for such vehicles.

E.Debugger Note: FactCheck.org does not accept advertising. We rely on gifts and personal donations from people like you. Please consider donating. Credit card donations can be made. Our “Donation” page. If you choose to give a check, send it to FactCheck.org.