The trade group representing major automakers urged GOP tax writers last month to preserve the full suite of tax credits for electric vehicles in Democrats’ climate law — a signal that Republicans are likely to face industry opposition as they prepare to roll back the EV incentives.
In the October letter obtained by POLITICO on Wednesday, the Alliance for Automotive Innovation — which represents industry giants including Ford, GM, Stellantis, Honda and Toyota — argued that incentives in the Inflation Reduction Act build on the 2017 Tax Cuts and Jobs Act to maintain a “globally competitive American auto industry” amid China’s growing dominance of the market.
“Sustaining these complementary provisions — including the Advanced Manufacturing Tax Credit, consumer tax credit and commercial leasing credit — is critical to cementing the U.S. as a global leader in the future of automotive technology and manufacturing,” David Schwietert, the group’s chief government affairs and policy officer, wrote in the letter.
“We welcome the opportunity to engage with the Committee to preserve, or even improve, key tax provisions that help to support billions of dollars of investments and thousands of American jobs,” he added, urging lawmakers to also preserve provisions in the TCJA that “set the economic conditions and opportunities for massive capital investments by the private sector.”
