Democrats have given up on the $4,500 electric car tax credit extra for union-made EVs as part of the Build Back Better Act, according to Democratic Senator from West Virginia Joe Manchin.
Right now, the Democrats need every single Senator from their party to support the bill for it to pass.
However, Senator Manchin has been withholding his vote and using it to eliminate other programs from the package, including the revision of the EV tax credit.
He stated that the Senate version of the bill no longer includes the $4,500 bonus for EVs built by unions.
It is a contentious issue, even though it is a minor portion of the entire law.
The primary goal of the change is to remove the tax credit threshold when automakers sell 200,000 EVs, as it disadvantages those automakers that were early in promoting electric vehicles. Additionally, many foreign automakers still have access to the credit, even though automakers Tesla and GM are American.
The $1.9 trillion “Build Back Better” legislation was approved by the US House of Representatives last year, but the divided Senate has yet to act on it.
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