Build Back Better Act - EV Tax Credit for Union Only Autos

AIADA  specifically opposes the $4,500 tax credit which would be applied only to electric vehicles built in unionized manufacturing plants. This policy would pit American workers against one another and limit consumer choice.

• Consumer choice will be severely limited. More than 50 EV models are sold in the U.S., yet the proposed tax credit will fully apply to just five vehicles. The new tax credit should support consumer choice, enabling Americans to receive the economic benefit when they choose any qualifying EV that meets their family’s needs.
• Competition and innovation will be stifled. A broad tax credit—available for union and non-union-built EVs—will promote competition and drive innovation, which together will benefit consumers and advance green technologies. Increased EV sales—for all manufacturers—will support additional R&D.
• The biased tax credit puts American jobs at risk. International automakers operate 31 non-union U.S. manufacturing facilities and support thousands of American jobs in addition to jobs provided by international auto dealers. Altogether, the U.S.-based international auto sector supports nearly 700,000 jobs. Many of these jobs will be put in jeopardy if the EV tax credit is allowed to move forward as designed and artificially tilts sales in favor of union-built EVs.

AIADA’s international nameplate franchises are committed to an electric future and will play an essential role in transitioning today’s consumers into EV consumers. Dealers urge lawmakers to stay focused on their objective, and allow the industry to work as one as we move towards electrification. Any policies that divide us, or prioritize some American auto workers above others, politicize what should be a shared mission. Congress should not be picking winners and losers among American workers.