Senate Deal Brings EV Tax Credits to Benefit Tesla, Toyota, GM

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U.S. officials are considering what the extension of a tax credit could look like for zero-emission vehicles, and two senators have agreed upon new circumstances surrounding the deal.

A senate deal between Chuck Schumer and Joe Manchin features the extension of tax credits for electric vehicles (EVs), according to those familiar with the matter who reported it to Bloomberg.

The deal is expected to benefit EV automakers such as Tesla, General Motors (GM), Toyota and more.

The credit is expected to be debuted alongside a larger legislative package from  President Joe Biden that includes around $369 billion dedicated to spending on climate and clean energy.

While Manchin had previously called the federal government subsidizing EVs “ludicrous,” Schumer has said U.S.-manufactured cars should all be EVs by 2030 — representing vastly different opinions.

While key details for the EV tax credit extension have yet to be released, a previous proposal held that union automakers would be able to offer an additional $4,500 in credits,  to buyers, though it received opposition from automakers like Tesla and Toyota.

Last year, automakers sold a record 652,000 vehicles, making up just 4.4 percent of all new car sales.

In May, the Biden administration announced plans for a $3.1 billion U.S. EV investment, geared toward boosting battery output.