According to Reuters, on July 1, the Electrification Coalition, an electric vehicle advocacy group, called on the U.S. House of Representatives to reconsider a bill passed by the Senate that would end tax credits for electric vehicles. The proposed legislation would terminate the $7,500 tax credit for new EV purchases and leases, as well as the $4,000 credit for used EVs, effective September 30.
The Electrification Coalition warned that eliminating these incentives at such a critical moment "would deal a direct blow to investment momentum in American manufacturing, amounting to waving a white flag and surrendering the future of transportation to China. The House must reject this bill, which goes against the interests of the American people."
Calstart, a California-based nonprofit organization promoting clean transportation, stated that the Senate's move to reduce clean transportation tax credits not only undermines U.S. job creation but also places American workers and manufacturers at a disadvantage-especially as global competitors race toward a zero-emission transportation economy.
However, the Alliance for Automobile Manufacturers-which represents major automakers including General Motors, Ford, Toyota, and Volkswagen-praised the Senate's revisions to the battery production tax credit provision. The group said the changes "protect America's advanced auto manufacturing while excluding Chinese companies from the benefits."
Ford Motor Company previously warned that the House bill could jeopardize its $3 billion investment in a battery plant in Marshall, Michigan. The facility, which is currently 60% complete, is expected to employ 1,700 workers.
In addition, U.S. automakers are set to benefit from another provision in the Senate bill: the removal of penalties for failing to meet Corporate Average Fuel Economy (CAFE) standards. This would ease regulatory restrictions on internal combustion engine vehicle production.
Last year, Stellantis paid $190.7 million in civil penalties for failing to meet U.S. fuel economy standards in 2019 and 2020. The company had already paid nearly $400 million in fines between 2016 and 2019. General Motors also paid $128.2 million for violations in 2016 and 2017.
