More than 100 members of Congress are urging Pelosi to back a union EV tax credit
More than 100 members of the United States House of Representatives on Tuesday urged Speaker Nancy Pelosi to include a $4,500 tax credit incentive for union-built electric vehicles (EV) in heaviest spending bill.
In a letter seen by Reuters, 107 Democrats urged Pelosi to maintain the credit accorded by the United Auto Workers (UAW), the AFL-CIO, and American automakers. The $4,500 loan will give a significant boost to Detroit's three automakers -- General Motors Co (GM.N), Ford Motor Co. (F.M) and Chrysler-parent Stellantis.
Representative Thomas Suozzi wrote in the letter, "We strongly support leveling the playing field between non-union and unionized workers by including the additional $4,500 incentive to support union-made electric vehicles."
Suozzi said the incentives "help ensure that working men and women are an integral part of that success story."
Pelosi's office declined to comment.
Tesla Inc (TSLA.O) and foreign automakers do not have unions representing assembly workers in the United States, and many have fought efforts to organize workers at U.S. factories.
12 major foreign automakers, including Toyota Motor Corp (7203.T), Volkswagen AG (VOWG_p.DE), Honda Motor (7267. T), Hyundai Motor (005380.KS) and Nissan Motor (7201.TS), urged Democrats to reject the proposed $4,500 tax incentive last month and have been lobbying lawmakers to oppose the union incentive.
A House committee last month approved legislation to increase EV credits to up to $12,500 per vehicle, including $4, 500 for union-made vehicles and $500 for U.S.-built batteries.
The foreign automakers said the proposal "would unfairly disadvantage American workers who have chosen not to join a union and produce more than half of all vehicles in the United States and the vast majority of American-made electric vehicles."
The tax credits, which are part of the $3.5 trillion spending bill, would cost $15.6 billion over 10 years.
The EV proposal also eliminates the option of eliminating tax credits after automakers have sold 200,000 electric vehicles, which would make GM eligible again, along with Tesla, although Tesla wouldn't receive the $4,500 credit.
Elon Musk, Tesla Chief Executive Elson Musk's Twitter account last month stated that the EV proposal was "written by Ford/UAW lobbyists... Not clear how this benefits American taxpayers."