President Biden and his party appear to have reached an agreement on a big social spending plan after months of discussions and brainstorming. In addition, the White House’s Build Back Better framework includes a $5,000 increase in the electric vehicle tax credit, for a total of $12,500.
There’s An EV Tax Credit Increase?
As of Oct. 28, the answer appears to be yes. President Biden’s Build Back Better plan includes a $12,500 electric vehicle tax credit, up from the $7,500 now offered to eligible vehicles and purchasers. Its inclusion comes as the framework drops a slew of other measures in order to reach an agreement with the president’s Democratic allies.
The finer specifics aren’t yet public, but the White House’s announcement highlights previously discussed negotiations. To be eligible, automakers must produce their electric vehicles in the United States using union workers. It’s unclear whether the bonus credits will be split as previously stated ($2,500 for US assembly and $2,500 for a union workforce). “The framework’s electric vehicle tax credit will lower the cost of an electric vehicle that is made in America with American materials and union labor by $12,500 for a middle-class family,” the White House says so far. Importantly, this would prevent Tesla and even US automakers constructing EVs outside of the nation, such as Ford’s Mustang Mach-E, from receiving at least a portion of the tax credit rise.
Tax Relief Support
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