The EV tax credit proposal — championed by Michigan Sen. Debbie Stabenow and Rep. Dan Kildee, both Democrats, but opposed by Manchin — 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.
Today, consumers can receive a tax credit of up to $7,500, but those credits begin to phase out once an automaker sells more than 200,000 EVs — a threshold already met by General Motors and Tesla. The proposed tax credit removes the cap, but after five years, only EVs assembled in the U.S. would be eligible for the $7,500 base credit.
“The EV incentives — which we consider a very important piece of all this — are in limbo, and we don’t know where that’s going to fall out,” said Dan Ryan, vice president of government and public affairs at Mazda North American Operations. “And then you have the enhancements for UAW- or U.S.-built on top of that, which are also very controversial and certainly something we’re not on board with.”