Home WORLD AMERICA Electric vehicles: possible removal of the tax credit favoring Washington

Electric vehicles: possible removal of the tax credit favoring Washington

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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 US-made electric vehicles (EVs). United.

An electric vehicle.

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

Photo: The Canadian Press/JONATHAN HAYWARD

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.

To be eligible for credits, the amendment would also require vehicle batteries to contain a certain percentage of materials from free trade partners.

The legislation is still a long way from being passed – it is sure to infuriate Senate Republicans, who will be reluctant to give the Democrats a legislative victory with the midterm elections, scheduled 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 Republican stonewalling tactics.

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I am very happy to see that our message has been heard and is reflected in the billsaid Kristen Hillman, Canada’s ambassador to the United States, in a statement.

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 up the very successful integration of our sector. automobile.

Chuck Schumer.

Chuck Schumer, US Senate Majority Leader

Photo: Associated Press/J. Scott Applewhite

Just two weeks ago, Chuck Schumer and Joe Manchin found themselves at an impasse over President Biden’s Climate and Health 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.

% by 2030. “,”text”:”Cut Inflation Act 2022 to make historic deficit reduction installment to fight inflation, invest in energy generation and manufacturing and reduce carbon emissions by around 40% by 2030. “}}”>The Inflation Reduction Act of 2022 will make a historic deficit reduction installment to fight inflation, invest in domestic energy generation and manufacturing, and cut carbon emissions by about 40 percent d 2030.

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Joe Biden, a self-proclaimed champion of Buy American protectionism, originally wanted to 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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