By David Shepardson

WASHINGTON (Reuters] – The White House attempted to drastically increase the electric vehicle credit tax credits but ran into serious problems when a Senate Democrat refused support a $1.75 billion domestic investment bill.

Joe Manchin of West Virginia appeared to strike a blow at President Joe Biden’s domestic policy bill Build Back Better. This signature bill was also intended to increase the social safety net, and combat climate change.

It includes an increase in the existing $7,500 electric vehicle tax credit to as high as $12,500 for U.S. union-made vehicles and a credit as high as $4,000 for U.S. used vehicles. General Motors (NYSE) and Tesla Inc (NASDAQ:) Inc would be eligible again for tax credits once they reach the 200,000-vehicle limit on the $7,500 credit.

Additionally, the bill includes a credit of 30% for electric commercial vehicles.

GM and Ford both plan to launch electric pickup trucks starting in 2022. The new tax credits might be critical for meeting the initial sales targets as well as increasing vehicle emission requirements.

Biden calls for 50% of all new U.S. cars to be either electric or plug in electric hybrids by 2030. According to automakers, the Trump administration could finalize new emission standards for vehicles through 2026 as early as next week.

Manchin opposed a $4500 credit in tax for union-made vehicles. This is part of the $12,500 proposal. Manchin calls the credit for union-made vehicles “wrong” as well as “not American”

Biden, many congressional Democrats, the United Auto Workers (UAW) union, and others back the EV credit credits. These would disproportionately help Detroit’s Big Three Automakers GM and Ford Motor (NYSE.) Co as well as Chrysler parent Stellantis NV – who assemble U.S. made vehicles in union-represented plants.

Tesla and other foreign automakers that operate in America do not have unions for assembly workers. Many have also fought UAW attempts to organize U.S. factories.

Toyota Motor (NYSE:) Corp has a West Virginia plant, but its employees in the United States aren’t union members. Therefore, they have lobbied against the union credit of $4,500.

Toyota has announced that it’s building a North Carolina battery plant worth $1.29Billion. Rivian Automotive, an EV startup, said it would build a Georgia plant worth $5B.

To be eligible for the $12,500 credit (which includes $500 for U.S.-made batteries), vehicles must have been built in the United States beginning in 2027. Canada, Mexico and Japan have criticised the plan.