Democratic lawmakers Wednesday unveiled a revised Social spending and climate provision: An electric vehicle tax credit up to $12,500 is extended for higher-end cars. Buyers who are eligible for this credit will have their income reduced.

The House Democrats’ update makes vans, sport utility vehicles and trucks priced up to $80,000 eligible for the full tax credit. Prior legislation capped credit for vans at $64,000 and SUVs at $69,000, respectively. Trucks were limited to $74,000.

Additionally, the proposal limits tax credits for taxpayers who report modified adjusted gross incomes below $250,000 or $500,000 in joint returns. Prior plans had limits of $400,000 per individual and $800,000. for joint filings.

The transportation sector is one of the largest contributors to U.S. greenhouse gas emissions, representing about one-third of emissions ever year. It is crucial that we transition away from fossil fuel vehicles and towards electric cars and trucks to fight climate change.

A $4,500 tax incentive is included in the Democrats’ proposal for electric vehicles made at unionized factories. This provision will be especially beneficial to automakers such as General MotorsAnd FordThe United Auto Workers union represents the workers in the manufacturing sector of.

Republicans opposed tax incentives that would allow electric vehicles to be purchased with labor from the union.

A modified version of the legislation is part President Joe BidenA $1.75 Trillion social and climate spending package could provide significant support to the electric vehicle industry. Industry forecasters predict that electric vehicles will account for less than 4 percent of U.S. annual sales. 

The Democrats will be closing negotiations this week on President Obama’s Build Back better plan. The House could hold a voteIn the next days, you will see the final bill.