Democrats unveil new EV tax credit proposal

  • An electric car and a plug-in hybrid car charge at a public charging station on Oct. 12, 2019 in Berlin, Germany. (Sean Gallup/Getty Images/TNS)

WASHINGTON — Democrats in Washington want to include a significant new incentive to buy electric vehicles in their $3.5 trillion social spending bill, according to a new plan revealed Sept. 10 by the House Ways and Means Committee.

For five years, the legislation would implement $7,500 point-of-sale consumer rebates for electric vehicles and pay out an additional $4,500 for vehicles assembled in a union facility. Another $500 would be awarded for vehicles using a battery manufactured in the U.S.

For the next five years after that, the $7,500 base credit would only apply to electric vehicles made in the U.S., but the other two incentives would stay the same.

“We want to make sure that people who make good wages, support their families and contribute those wages and benefits in their community are the primary beneficiaries of this,” said Rep. Dan Kildee, D-Mich., who serves on the Ways and Means Committee and has been pushing the legislation in the House.

The first five years should incentivize EV adoption and domestic battery production,


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