Toyota said in a statement that the plan, unveiled late Friday, discriminates “against U.S. car workers on the basis of their choice not to unite organizations.”
The bill, which would be voted on Tuesday by the Democratic-led House Ways and Means Committee as part of a $ 3.5 trillion proposed bill, would benefit Detroit’s big three automakers, which have union-represented automakers.
In a statement, Honda called the bill “unfair” and said it “discriminates between electric cars made by hard-working American car workers, simply based on whether they belong to a union … Honda production workers in Alabama, Indiana and Ohio who want to build our electric cars deserve fair and equal treatment by Congress. ”
The proposal, which is estimated to cost $ 33 billion to $ 34 billion over 10 years, will increase the maximum tax deduction for electric cars to up to $ 12,500 up from the current $ 7,500. The $ 12,500 figure includes a $ 500 credit for the use of batteries made in the United States.
The proposal is an important part of Democratic President Joe Biden’s goal of ensuring that electric cars account for at least 50% of U.S. car sales by 2030 and increase jobs in U.S. unions.
However, the bill does not phase out the car manufacturers’ tax deductions after they hit 200,000 sold electric cars, which would make General Motors Co and Tesla Inc eligible again. It would also create a new minor credit for used electric cars of up to $ 2,500.
GM, Ford Motor Co and Stellantis NV, parent of Chrysler, are assembling their US-made vehicles in plants represented by the United Auto Workers (UAW) union.
In contrast, foreign automakers operating in the United States as well as Tesla do not have unions representing assembly workers, and many of them have struggled with the UAW’s efforts to organize American factories.
Tesla would be eligible for up to $ 8,000 credits under the bill.
UAW President Ray Curry said the tax deduction “would go a long way in supporting well-paying union jobs in the (EV) automotive sector that President Biden has fought for.”
The bill limits EV credit to cars not priced at more than $ 55,000, while trucks can be priced up to $ 74,000.
Toyota added that it will “fight to focus taxpayer dollars on making all electrified vehicles available to U.S. consumers who cannot afford expensive cars and trucks.”