Legislation to Expand American, Union-Made Electric Vehicles Passes Key House Committee
WASHINGTON—Congressman Dan Kildee (MI-05), Chief Deputy Whip of the House Democratic Caucus and member of the House Ways and Means Committee, today praised the Ways and Means Committee’s passage of his legislation to expand tax credits for middle class families to purchase an electric vehicle. The legislation passed as a part of President Joe Biden’s Build Back Better Budget reconciliation bill.
Under current law, consumers may receive a tax credit of up to $7,500 if they purchase an eligible electric vehicle. However, the tax credits begin to phase out permanently once automakers sell over 200,000 units. Several automotive makers, including General Motors, have already exceeded the current cap.
Congressman Kildee’s legislation would expand the existing consumer tax credit for electric vehicles and add incentives for vehicles made with union labor. After five years, only cars assembled in America would be eligible for the tax credit. The legislation focuses on helping working class and middle class Americans purchase an electric vehicle, while ensuring that the wealthy and luxury cars are not eligible for credits.
“My hometown of Flint was the birthplace of the labor movement and helped put the world on wheels. Now through my work in Congress, I’m working to ensure that American auto workers can put the world on electrified wheels,” Congressman Kildee said. “As a country, we either let China continue to dominate the production of electric vehicles, or we can make strategic investments now that will result in American workers and union labor making these vehicles here in the United States. Electric vehicles are a win-win when it comes to protecting our planet from pollution and growing our economy. I want to thank President Biden, Chairman Neal and Senator Stabenow for working closely with me on this legislation to support Michigan jobs.”
“With the partnership of our federal government, I know our workers, manufacturers, and suppliers are going to lead the charge on producing electric vehicles. Today’s passage of our consumer rebate shows our commitment to American innovation and American jobs. It will make sure taxpayer dollars are used to purchase vehicles built in the United States and by American workers, while also addressing the climate crisis,” said Senator Stabenow.
“More electric vehicles on our roads means fewer emissions, cleaner air, and a healthier future for our communities,” said Congressman Jimmy Gomez. “Congressman Kildee’s legislation and my bill, the Affordable EVs for Working Families Act, will accelerate our transition to electric vehicles by strengthening purchase incentives to give millions of Americans the opportunity to drive electric for the first time.”
Congressman Kildee’s legislation, developed with Senator Debbie Stabenow (D-MI), would:
- Make consumers eligible for a $7,500 credit for a qualifying electric vehicle for the first five years and provide a $4,500 bonus if it is made by union workers, and a further $500 bonus if made using a battery made in the U.S.;
- After five years, only electric vehicles assembled in the U.S. would be eligible, while other bonuses would still apply;
- Makes the tax credit fully refundable and transferable at the time of purchase so the consumer can get their tax credit when purchasing the vehicle, instead of having to claim the tax credit on their annual tax return;
- Ensure that no American making over $400,000 would be eligible to receive the credit.
- Creates limits for the price of the vehicle eligible to ensure that luxury cars are ineligible for the credit.
This proposal is supported by the below originations:
The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW)
“I commend Congressman Kildee for crafting legislation to protect and create more good paying union jobs for years to come,” said UAW President Ray Curry. “Congressman Kildee’s provision would go a long way in supporting good paying union jobs in EV auto sector that President Biden has championed. For too long U.S. tax credits meant to create good paying American jobs have subsidized products not made in the United States or at substandard wages. This amendment continues the work of Senator Stabenow to make sure those are good paying jobs right here at home. Congressman Dan Kildee stood up for generations of American workers today. I commend him, Chairman Neal, and all members of the Ways and Means Committee who support this important provision.”
The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
“The AFL-CIO wholeheartedly supports the pro-union provisions of electric vehicle tax credit that the Ways and Means Committee is marking up this week. A bonus tax credit for EV's assembled in a union shop will support high standards for all autoworkers. After-inflation pay for autoworkers has been in decline for a long time. The simple reason is the practices of non-union auto companies in the United States. Full stop. Unions are good for workers and good for America. Shifting EV demand to high-road employers will benefit everyone. 68% of Americans support unions, and that includes a lot of non-union autoworkers. We look forward to passing this tax credit and the other pro-union provisions of the Build Back Better agenda.”
Ford Motor Company
“Electric vehicle consumer incentives are key to accelerating the transition to a zero-emissions transportation future, and we appreciate Congressman Kildee and Senator Stabenow’s leadership on this issue,” said Kumar Galhotra, President, Americas & International Markets Group, Ford Motor Company. “This legislation will help more Americans get into EVs, while at the same time supporting American manufacturing and union jobs. As the automaker who assembles more vehicles in America than any other, Ford is doing our part to lead the electric vehicle revolution by investing tens of billions of dollars in EVs. Initial customer response to the fully electric versions of our most iconic and popular vehicles, like the American-assembled F-150 Lightning and E-Transit, is exceeding our expectations. We will continue to work with our government and UAW partners to combat climate change and stand up for American workers.”
“We applaud Congressional efforts, particularly the leadership of Congressman Kildee, for championing these critical efforts to revise the EV tax credits that will benefit consumers and help build out domestic EV manufacturing and supply chains to support U.S. leadership in electrification. General Motors believes in an all-electric, zero-emissions future and is dedicating significant resources to manufacturing and infrastructure here in the United States to drive that vision.”
“As Stellantis continues our aggressive electrification push—highlighted by an investment of more than $35 billion through 2025—we are pleased to see Congress match the industry's commitment with meaningful inducements that will help consumers make the switch to electric vehicles. Consumer incentives, a significant pledge to increase public charging infrastructure, and support for U.S. R&D and manufacturing, are critical steps to create a robust EV ecosystem. The House Ways & Means Committee's proposed incentives will spur the market by making electrified vehicles affordable for more Americans, which in turn will support well-paying, middle-class jobs in the nation's largest manufacturing sector.”
Michigan League of Conservation Voters
“Michigan put the world on wheels, and now we have a massive opportunity to lead the world on production of clean electric vehicles that will save drivers money and reduce pollution in our air and water,” said Lisa Wozniak, executive director of the Michigan League of Conservation Voters. “We commend Congressman Kildee and Senator Stabenow for leading the charge on bolstering electric vehicle tax credits to make the cars of the future more affordable and ensure they are made right here in Michigan with union labor.”
“The energy landscape is changing before our eyes as we continue to explore new ways of creating, delivering and consuming electricity,” said Linda Apsey, President and CEO of ITC. “The electrification of transportation and other economic activities will be a key catalyst for a cleaner, greener future. Increasing electric vehicle adoption will offer significant opportunities for good quality jobs and economic growth in Michigan and nationwide. As the largest North American independent electric transmission company, ITC is committed to supporting an electrified future. We support this legislation and applaud Congressman Kildee and U.S. Senators Stabenow, Alexander, Peters and Collins for their efforts to drive EV adoption and boost economic opportunities for our citizens.”
“DTE is committed to bringing the benefits of EVs to our customers. We applaud Congressman Kildee’s leadership in securing provisions within the budget reconciliation legislation to expand EV tax credits, which will sustain manufacturing jobs in Michigan while providing more sustainable transportation options. These efforts will help make EVs more accessible and affordable, benefiting consumers, our environment, and our state’s economy.”
“At Consumers Energy, we are making bold moves toward an EV future in Michigan and we are excited to work with Congressman Kildee on his newly introduced legislation. Our company has helped power over 1,000 EV chargers for homes, businesses and in public places through PowerMIDrive, and we are committed to thousands more. We also started PowerMIFleet to electrify business fleets,” said Lauren Youngdahl Snyder, Consumers Energy’s vice president of customer experience. “Congressman Kildee’s legislation will support Michigan manufacturing, benefit our customers and the Michigan economy, and combat climate change.”
American Lung Association
“The nation must act urgently to protect the health of all Americans from air pollution and climate change. Reducing emissions from vehicles is a critical part of the solution,” said Harold P. Wimmer, President and CEO, American Lung Association. “More electric vehicles on the road, combined with clean, non-combustion renewable electricity, will help reduce dangerous air pollution and fight climate change at the same time.”
“Building the next generation of vehicles and technology here—and creating more, better jobs in the manufacturing sector—is key to ensuring that communities and workers across the U.S. reap the employment benefits and economic revitalization that should accompany the sector-wide transition to EVs,” said Director of Manufacturing and Advanced Transportation Zoe Lipman. “We are greatly encouraged to see strong labor and domestic manufacturing standards—as well as improved equity provisions—attached to this credit. The important 30D/36C tax credit provision will continue to play a key role in shaping the growth of the EV market in the U.S., so it is fitting that these credits provide incentives for auto companies to invest to build the vehicles and technology of the future here and do right by the workers that build them. Additionally, continued incentives for EVs will play a key role in reducing both greenhouse gas emissions and dangerous air pollution. We urge the committee to retain and strengthen these and other manufacturing provisions throughout the budget reconciliation process.”
League of Conservation Voters
“Accelerating the adoption of electric vehicles is critical to meeting our commitment to cut climate pollution in half by 2030 and advancing environmental justice and clean air for all,” said Matthew Davis, Senior Director of Government Affairs at the League of Conservation Voters. “We thank Congressman Kildee, Senator Stabenow, relevant Chairs, and other members and their staff for updating and enhancing the EV tax credit to be more effective at accelerating EV adoption, more accessible for more households, delivering the benefits to those that need it the most, encouraging domestically-sourced components and union-assembled vehicles, and opening it back up to all vehicle manufacturers, regardless of how many EVs sold. We look forward to working with these EV champions and other leaders in Congress to advance this investment in clean transportation and other investments that together will ensure Congress passes the Climate Test. Failure is not an option.”
Environmental Defense Action Fund
“Congressman Kildee’s proposal will help more people have access to clean vehicles and help electrify our transportation sector. Increasing the sales of new cars that eliminate climate and health-harming pollution from their tailpipes can boost good-paying union jobs, save consumers thousands of dollars, improve public health, and save lives. We’re excited to see proposals like Congressman Kildee’s that will help us get closer to our climate goals while stimulating the economy. We thank him for his leadership on this issue.”
Natural Resources Defense Council Action Fund
“The federal budget must reduce our greenhouse gas emissions and create high-quality jobs. The Ways and Means Committee’s electric vehicle tax credit does just that. Thanks Congressman Dan Kildee and Senator Stabenow for leading this charge and fighting for our climate and workers across America!”
“Building healthier communities requires advancing clean cars and family-sustaining jobs in the U.S., because improving air quality, reducing climate emissions, and securing economic justice go hand in hand. It is disappointing to see automakers like Toyota and Honda lobbying against this important incentive. We urge Congressional leaders to take charge of this moment to move this forward, along with even bigger investments in the transformation of our transportation systems,” said Katherine García, Acting Director of the Sierra Club’s Clean Transportation for All campaign.
Edison Electric Institute (EEI)
“EEI and our member companies are pleased that the House Ways and Means Committee has included provisions in the budget reconciliation legislation that would expand electric vehicle (EV) tax credits, and we thank Congressman Dan Kildee for his leadership on this issue,” said Edison Electric Institute (EEI) President Tom Kuhn. “The EV tax credits have helped to position the United States as a leader in advancing and adopting electric transportation. By expanding these credits, Congress will continue to spur domestic manufacturing investment throughout the supply chain. This will further drive down costs for consumers and put even more EVs on the road, increasing the many environmental, security, and economic benefits that EVs provide.”
Congressman Kildee has led the effort to boost clean energy manufacturing and support automotive works in the U.S. House of Representatives for many years. He previously introduced the Driving America Forward Act in 2019. In 2020, three of Congressman Kildee’s bills were included as recommendations in a 2020 committee report on climate change. As a member of the House Ways and Means Subcommittee on Trade, Kildee has been an advocate for enforcing trade agreements that protect Michigan workers and businesses. Last Congress, Kildee fought to improve and ultimately pass the U.S.-Mexico-Canada Trade Agreement, replacing the disastrous North American Free Trade Agreement and has worked to hold auto companies in Mexico accountable to the agreement.