Honda Calls EV Tax Credit Bill 'Unfair' Duh!

The AIADA reported that Los Angeles-area automakers are keeping an eye on a budget bill recently passed by the House Ways and Means Committee, which if approved by Congress, would expand the consumer EV tax credit and provide an additional $4,500 for vehicles made by union labor, reports the Los Angeles Business Journal.

The bill introduced by Rep. Dan Kildee (D-Mich.) would extend the $7,500 EV tax credit through 2031 but limit it to sedans costing less than $55,000, while price tags for vans, SUVs and pickup trucks could not exceed $64,000, $69,000, and $74,000, respectively.

The tax credit would go up by $4,500 if the EV meets “domestic assembly qualifications” in which “final assembly of such vehicle occurs at a plant, factory or other place which is operating under a collective bargaining agreement,” according to the bill. Torrance-based American Honda Motor Co. Inc. said in a statement that it was “disappointed” in the proposal.

It described the union portion of the proposed legislation as “unfair.” Honda, which operates nonunion factories in Alabama, Georgia, Indiana, and Ohio, announced in April that it expects battery electric and fuel cell electric vehicles to comprise 40% of its sales in North America by 2030 and 100% by 2040. Read more here (Source: Los Angeles Business Journal).