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Democratic MPs on Wednesday reveals a revised Social Spending and Climate Protection, which expands an electric vehicle tax credit of up to $ 12,500 for more expensive cars and suggests a lower income limit for buyers who are eligible for the credit.
The House Democrats update makes vans, sport utility vehicles, and trucks eligible for full tax credit at a cost of up to $ 80,000. The previous bill capped loans for vans priced at $ 64,000, SUVs priced at $ 69,000, and trucks priced at $ 74,000.
The proposal also limits the full tax credit for individual taxpayers reporting a modified adjusted gross income of $ 250,000 or $ 500,000 on joint tax returns. The previous plan had caps of $ 400,000 for individual submissions and $ 800,000 for joint submissions.
The transportation sector is one of the largest emitters of US greenhouse gas emissions, accounting for around a third of its emissions annually. The transition from gas vehicles to electric cars and trucks will be critical to tackling climate change.
The Democratic proposal includes a $ 4,500 tax incentive on purchases of an electric vehicle made in a unionized factory. Above all, car manufacturers would benefit from the regulation, such as General Motors and fordwhose workers in production are represented by the United Auto Workers union.
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Republicans have spoken out against tax incentives for buying electric vehicles that are union-made.
The optimized legislation that is part of President. is Joe BidenThe $ 1.75 trillion social and climate spending package would give the electric vehicle market a significant boost. According to industry forecasts, EV sales this year are expected to represent less than 4% of US sales.
Democrats want to finalize negotiations on the president’s Build Back Better plan this week. The House could vote in the next few days on the invoice.