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Honda, Toyota Dispute EV Tax Proposal

They called it unfair and discriminatory.

A proposal to grant union-made electric vehicles in the U.S. an additional $4,500 tax incentive drew criticism from Toyota and Honda.

According to Reuters, the companies described the provision authored by House Democrats as unfair and discriminatory against non-unionized auto workers.

The proposal is estimated to cost up to $34 billion over 10 years and increase the maximum tax credit for EVs by $5,000. 

It is part of President Biden’s goal to have 50% of U.S. vehicle sales come from EVs by 2030. 

The measure would also eliminate the phasing out of automakers’ tax credits after they reach 200,000 EVs sold. 

UAW President Ray Curry said the tax credit provision “would go a long way in supporting good-paying union jobs in the EV auto sector.”

The measure, which is part of a proposed $3.5 trillion spending bill, is set to be voted on Tuesday by the House Ways and Means Committee.

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