Toyota Motor Corp and American Honda Motor Co opposed US Democrats' proposal to expand EV tax credits for consumers to union-made vehicles.
Putting US EV Makers Ahead
The proposed law aims at putting local automakers in the lead giving them a big competitive edge in prices by adding an additional $4,500 tax incentive on cars made by foreign car manufacturers operating in the United States like Honda Motor Co and Toyota Motor Corp.
Toyota and Honda objected to such plans calling it unfair and discriminatory, citing fears of consumer choice limitation.
EV and Biden's Climate Goals
The new law comes as a cornerstone in President Biden's climate goal to eliminating carbon emissions by boosting EV clean cars adoption to at least 50% of US vehicle sales by 2030.
Awaits voting by The House Ways and Means Committee on Tuesday, the legislation is expected to cost $33 billion to $34 billion over 10 years. It would also rise to up to $12,500 the maximum tax credit for EVs, up from the current $7,500.
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