Detroit automakers would be able to offer $4,500 more in tax credits to U.S. electric car buyers than rivals such as Tesla Inc. and Toyota Motor Corp. under the $1.75 trillion tax and spending proposal unveiled by the White House on Thursday.
The plan calls for all automakers to be able to offer $7,500 to consumers for EV purchases for the first five years of the law, a win for Tesla and General Motors, which have been bumping up an existing cap that limits the number of tax credits manufacturers can offer to 200,000.
However, cars made by American manufacturers with union-represented workers would be allowed to offer an additional $4,500 in credits, according to a draft text of the bill released by the House that is subject to further negotiation. Tesla and foreign-owned automakers such as Toyota and Honda Motor Co. have argued the bill would give Detroit automakers an unfair advantage as the industry races toward an electric future.