On Tuesday, Sept. 14, the House Ways and Means Committee debated electric vehicle (EV) tax credits as part of the budget reconciliation bill, and those provisions will be voted on today. NADA supports tax credits to incentivize the purchase of EVs, but cannot support the bill in its current form. We will continue to work with the Committee and congressional leaders as the legislation progresses in the House and Senate to “level the playing field” and broaden the EV tax credit for every brand our members sell to achieve widespread EV adoption among consumers.

The bill as currently drafted would increase the current $7,500 tax break for vehicles and it could rise to $12,500 if the vehicle is assembled at a union facility and uses U.S. manufactured batteries. However, during the committee markup yesterday, Rep. Dan Kildee (D-Mich.) recognized Rep. Terri Sewell’s (D-Ala.) concerns that this should not be a choice between unionized and non-union workers. Rep. Kildee said publicly he is committed to working on Rep. Sewell’s concerns as the bill moves to the House floor.

NADA has for many months supported improving the consumer tax credits and has advocated for the broadest application of EV tax credits to help spur wide EV adoption among consumers.