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Honda and Toyota criticize Democrats’ proposed tax credit for union-made electric vehicles

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An electric vehicle plugged into a charging station. A new proposal would boost the tax credit for US union-made EVs.

Honda and Toyota are criticizing a new proposal by Democratic lawmakers to expand tax credits for electric vehicles, saying it discriminates against non-union auto workers, Reuters reported. Under the proposal, US union-made electric vehicles would qualify for a tax credit of $12,500 per vehicle, while keeping a credit for most other EVs at $7,500. The proposal would significantly favor Big Three US automakers GM, Ford, and Fiat Chrysler over non-union companies such as Tesla and the Japanese carmakers, both of which have plants in the US.

US Rep. Dan Kildee (D-Michigan) told Reuters “We want to incentivize this. It puts American manufacturers in the lead, which is where we want them, and it reduces emissions faster than any other...

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