ALEXANDRIA, Va.—The Democratic-led House has proposed a tax credit expansion on electric vehicle purchases, reports Reuters. The expanded $12,500 credit would apply to EVs made by U.S. unionized automakers, while a $7,500 tax credit would be available for most other electric cars. Taxpayers can’t make more than $400,000 a year to qualify for the EV tax credit, and it would apply to cars with a purchase price up to $55,000 and trucks up to $74,000.

The tax credit expansion, part a broad tax measure in a planned $3.5 trillion spending bill, also provides resources for technologies including electric vehicle charging infrastructure and hydrogen fueling. However, according to a letter sent to the Committee on Energy and Commerce by NACS, there are provisions of the legislation that should be changed to avoid discouraging private investment and ultimately making the legislation counterproductive.

NACS, along with SIGMA and NATSO, asks the committee to make changes to the Electric Vehicle Supply Equipment Rebate Program included in the bill, which allows investor owned utilities to take federal rebate dollars to pay for costs that have already been paid for by individual consumers and businesses in the form of higher electricity bills.

“That double-dipping whereby these utilities get their costs paid for twice wastes important federal funds and undermines any semblance of a competitive playing field because private businesses must pay their own capital costs and cannot double-dip,” states the letter.

Additionally, the language of the Electric Vehicle Charging Equity Program included in the draft bill does not allow private businesses to receive funds from the program to serve low-income, disadvantaged and rural communities unless those businesses are locally owned small and disadvantaged businesses.

“We have no problem with those businesses having preferences in the program, but they should not be the only type of private businesses eligible for funding,” states NACS in the letter.

NACS also argues that the State Energy Transportation Plans contemplated in the draft legislation should be changed to ensure that states work with rather than displace the private sector in providing technologies to reduce carbon.

“If states deploy this infrastructure on their own without the private sector, that will depress private investment in the infrastructure,” the letter states.

Toyota and Honda have criticized the proposal, arguing it discriminates against American autoworkers who do not work for unionized automakers, reports Reuters.

“The Honda production associates in Alabama, Indiana and Ohio who will build our EVs deserve fair and equal treatment by Congress,” wrote Honda in a statement.

Register to attend the 2021 NACS Show October 5-8, at McCormick Place in Chicago and take advantage of the education sessions on electric vehicles and fuels, including these sessions developed by retailers for retailers:

• EV 101: What is EV/EV Charging and Why It's Important
• Disappearing Gallons: Cause & Effect 
• EV 201: How Do I Do EV? 
• EV 301: The Economics of EV Charging
• Trends in Biofuels and a Bridge to the Future