House Passes Biden’s $12,500 EV Tax Credit, ‘Build Back Better’ Bill Heads to Senate
After U.S. President Joe Biden unveiled his Build Back Better plan with a proposal to increase tax credits on zero-emission vehicles, the Build Back Better plan has officially passed the House.
The U.S. House of Representatives passed President Joe Biden’s $1.9 trillion USD Build Back Better bill on Friday, according to CNET.
The bill passed with a 220-213 vote and includes major changes to the federal government’s electric vehicle (EV) rebate system, including the addition of a $12,500 USD refundable credit for EV buyers. The bill favours vehicles made in the USA, by union workers, much to the opposition of other automakers such as Toyota and Tesla and even allies such as Canada.
The current credit offered to EV buyers is for up to $7,500 USD, and is set to increase if the bill passes in the Senate.
Canada ‘Concerned’ About Biden’s Buy-American EV Tax Credit https://t.co/XM69dz4xNW
— TeslaNorth.com (@RealTeslaNorth) November 18, 2021
Proposed changes to the bill include offering the $12,500 USD in tax credits for buyers of U.S. union-made EVs, and as a credit at tax refund time instead of as a refundable credit.
Today, the only car that would qualify for anywhere near the full proposed $12,500 EV tax credit is the Chevrolet Bolt EV and Bolt EUV. Tesla Model 3/Y would get $8,000 and Ford Mach-E would get $8,000.
— Sawyer Merritt 📈🚀 (@SawyerMerritt) November 19, 2021
Now that it has passed the House, the Build Back Better program will head to the Senate where it’s likely to face even more scrutiny.
In order to pass, the bill will need every Democrat to vote for it, though holdouts still include Democratic Senators Kyrsten Sinema and Joe Manchin.