Stock Groups

More than 100 U.S. lawmakers urge Pelosi to back union EV tax credit By Reuters

[ad_1]

2/2
© Reuters. FILEPHOTO: General Motors assembly workers install a battery under a partially assembled 2018 Chevrolet Bolt Electric Vehicle on Orion Assembly’s Lake Orion assembly plant, Michigan. March 19, 2018. REUTERS/Rebecca Cook/File Photo

2/2

WASHINGTON, (Reuters) – More than 100 U.S. House members urged Nancy Pelosi Tuesday to maintain a $4500 tax credit for electric vehicle (EV) constructions by unions in a huge spending bill.

Reuters obtained a copy of Reuters’ letter in which Democrats urged Pelosi not to withdraw the support for the credit by the United Auto Workers union, and the AFL-CIO. Detroit’s three largest automakers would see significant growth with the credit of $4,500 — General Motors Co. (NYSE:), Ford Motor. (NYSE:) Co. and Chrysler-parent Stellantis.

We strongly support equalizing the playing fields between non-unionized workers and unionized ones by including an additional $4,500 incentive to help union-made EEVs,” said the letter.

Tesla (NASDAQ:) Inc, and other foreign automakers don’t have unions that represent assembly workers in America. Many have also fought attempts to organize U.S. factories.

Last month, 12 major foreign automakers, including Toyota Motor (NYSE) Corp, Volkswagen AG, Motor Motor, Honda Motor Motors, Hyundai Motors, Nissan Motors and Nissan Motors (OTC) Motor urged Democrats against the proposed tax incentive of $4,500.

Last month, a House panel approved legislation that would increase EV credits up to $12,500 per car, which includes $4,500 for vehicles made by unions and $500 for batteries manufactured in the United States.

According to foreign automakers, the proposal “would unfairly prejudice American workers who choose not to join a labor union and produce over half of the United States’ vehicles and the vast majority American-made EVs.”

One-time $15.6 billion would be spent over 10 years on tax credits that are part of the $3.5 trillion spending plan.

The EV proposal does not allow for the phasing of tax credits until automakers sell 200,000 electric vehicles. That would make GM, as well as Tesla, eligible once more. Tesla will still receive the $4500 credit.

Elon Musk, Tesla CEO, stated on Twitter (NYSE 🙂 that the EV plan was written by Ford/UAW lobbyists… Unclear how this will benefit American taxpayers.”

Disclaimer Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.



[ad_2]