Electric vehicles: possible elimination of the tax credit favoring Washington


V&eacute ;electric vehicles: possible removal of the tax credit favoring Washington

Canada and Mexico are challenging the $12,000 electric vehicle tax credit granted only if the vehicles were made in the United States.

A crisis that could have been facing the Canadian auto industry may finally be over.

Democratic U.S. Senators Chuck Schumer of New York State and Joe Manchin of West Virginia have agreed to propose scrapping a tax credit scheme that favored electric vehicles (EVs) made in the United States.

A small car is parked in a parking lot reserved for electric vehicles.

Instead, they are proposing an amendment to President Joe Biden's climate and health bill that would expand the appropriations to include all of North America.

For vehicles to qualify for credits, the amendment would also require their batteries to contain a certain percentage of materials from free trade partners.

The legislation is still a long way off – it's sure to infuriate Senate Republicans, who will be reluctant to give Democrats a legislative victory with the midterm elections, slated for November.


Joe Manchin's vote is crucial in the equally divided Senate, but the bill, which is expected to reach the Senate floor next week, will still need 60 votes to avoid the tactics of x27;republican filibuster.

I'm very happy to see our message being heard and reflected in the bill, said Kristen Hillman, Canada's Ambassador to the United States , in a press release.

Canada, she added, has been relentless in its efforts to convince Congress and the White House to abandon a plan that discriminates against Canada and breaks the law. very successful integration of our automotive sector.

Chuck Schumer, US Senate Majority Leader

Just two weeks ago, Chuck Schumer and Joe Manchin found themselves at an impasse over President Biden's climate and health care spending bill, a scaled-down version of an ambitious social spending undertaking. Instead, they submitted a $700 billion deal that includes a series of spending measures for climate and energy projects, deficit reduction, prescription drugs and health bonuses.

The Inflation Reduction Act of 2022 will make a historic down payment on deficit reduction to fight inflation, invest in the production and manufacturing of; national energy and cut carbon emissions by about 40% by 2030.

Joe Biden, a self-proclaimed champion of Buy American protectionism, wanted to Originally reserve the best tax incentives for electric vehicles assembled in the United States with unionized workers. Since then, the federal government, the Canadian Embassy and stakeholders across the Canadian auto industry have consistently lobbied against the plan.

In particular, they argued that when the United States targets Canadian industrial capacity, particularly in the production of electric vehicles, lawmakers are crippling their own country's ability to compete with China.


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