EV group urges US House to restore electric vehicle tax credits

By David Shepardson

July 1 (Reuters) - An electric vehicle advocacy group on Tuesday urged the U.S. House to revise a bill passed by the Senate that would end the $7,500 tax credit on new electric vehicle sales and leases on September 30, as well as the $4,000 tax credit for used EVs.

The Electrification Coalition said killing the credits "driving much of the nation’s manufacturing investment at this critical juncture would effectively wave the white flag of defeat, ceding control over the future of transportation to China ... The House must reject this act against the interest of the American people."

Calstart, a California-based nonprofit that promotes clean transportation, said the Senate vote to cut clean transportation tax credits undermines American jobs and puts American workers and manufacturers at a disadvantage, just as global competitors accelerate the transition toward a zero-emission transportation economy."

The Alliance for Automobile Manufacturers, a group representing General Motors GM.N, Ford F.N, Toyota 7203.T, Volkswagen VOWG.DE and others, praised the Senate bill for revising language on a battery production tax credit that "preserved auto-related advanced manufacturing across the country and prohibited Chinese companies from eligibility."

Ford previously raised alarm that the House version could threaten the Dearborn automaker's projected $3 billion investment in a Marshall, Michigan battery plant that is 60% complete and slated to employ 1,700 workers.

Separately, U.S. automakers stand to receive significant benefits from the Senate bill that would eliminate penalties for failing to meet Corporate Average Fuel Economy shortfalls. The measure makes it easier for automakers to build gas-powered vehicles.

Last year, Chrysler parent Stellantis STLAM.MI paid $190.7 million in civil penalties for failing to meet U.S. fuel economy requirements for 2019 and 2020 after paying nearly $400 million for penalties from 2016 through 2019. GM previously paid $128.2 million in penalties for 2016 and 2017.