WASHINGTON — A proposal by House Democrats that would give consumers an extra incentive to buy union-made electric vehicles has stoked tension and debate among lawmakers, automakers and other stakeholders.
Despite outspoken criticism from Toyota Motor North America, American Honda Motor Co., Tesla and advocates of nonunionized businesses, the House Ways and Means Committee last week advanced the tax credits for inclusion in the Democrats' $3.5 trillion budget reconciliation bill.
The proposal — led by Rep. Dan Kildee, D-Mich. — would boost consumer tax credits to as much as $12,500 for EVs assembled in a factory represented by a labor union with U.S.-produced batteries. After five years, only EVs assembled in the U.S. would be eligible for the $7,500 base credit.