Senate Finance Committee Republicans Oppose EV Provisions in Build Back Better Act
The Republican members of the U.S. Senate Finance Committee signed a "Dear Colleague" letter this week opposing the electric vehicle (EV) provisions included in the Build Back Better Act. These provisions include an up to $12,500 tax credit for the purchase of an American-made EV manufactured in a unionized shop.
Under this legislation, only two of the fifty electric vehicle models currently available for purchase in the United States qualify for the full $12,500 tax credit. Senate Republicans are opposing this provision, stating "we fail to see why the federal government should be picking clear winners and losers in the free marketplace".
Additionally, the letter raises concerns that the Build Back Better provisions unfairly benefit the wealthy. As quoted in the letter, "data suggests that nearly 80 percent of the existing EV tax credits have gone to taxpayers earning more than $100,000.
Lastly, the letter cites concerns that domestic content and assembly provisions in the legislation undermine America's trade interests. By restricting tax credits to only American-made vehicles, foreign-made vehicles are put at a disadvantage.
The letter requests that these provisions be reconsidered before any further discussion of Build Back Better continues. The Build Back Better legislation failed to pass before the end of 2021 and remains stalled in both houses.
To read the full letter, click here.