WASHINGTON: Republicans in the US House of Representatives on Monday proposed killing the electric vehicle tax credit and repealing fuel efficiency rules designed to prod automakers into building more zero-emission vehicles as part of a broad-based tax reform bill.
The proposal, which is set for a House Ways and Means Committee hearing on Tuesday, would repeal a $7,500 new-vehicle tax credit and a $4,000 used-vehicle credit on Dec. 31, although it would maintain the new-vehicle credit for an additional year for automakers that have not yet sold 200,000 EVs.
The president of the Electric Drive Transportation Association, Genevieve Cullen, criticized the proposal, saying that plans “to abandon US leadership in energy innovation by gutting federal investment in electrification are catastrophically short-sighted.”
The proposal, she said, would deliver “an enormous market advantage” to competitors like China and threaten US manufacturing and jobs.
The US Treasury in 2024 awarded more than $2 billion in point-of-sale rebates for EVs.
The proposal leaves in place a key battery production tax credit for automakers and battery makers, but a new provision would bar the credit for vehicles produced with components made by some Chinese companies or under a license agreement with Chinese firms.
The provision, which would take effect in 2027, could bar credits for cars powered by Chinese battery technology licensed by American companies such as Ford Motor or Tesla .
House Republicans also propose to kill a loan program that supports the manufacture of certain advanced technology vehicles. It would rescind any unobligated funding and rescind corporate average fuel economy standards and greenhouse gas emission rules for 2027 and beyond. That portion will be taken up by the Energy and Commerce Committee.
Among outstanding loans finalized in President Joe Biden’s last weeks in office are $9.63 billion to a joint venture of Ford Motor and South Korean battery maker SK On for construction of three battery manufacturing plants in Tennessee and Kentucky; $7.54 billion to a joint venture of Chrysler-parent Stellantis and Samsung SDI for two EV lithium-ion battery plants in Indiana; and $6.57 billion to Rivian for a plant in Georgia to begin building smaller, less expensive EVs in 2028.
US House Republicans seek to kill EV tax credit, loan program
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US House Republicans seek to kill EV tax credit, loan program
- The US Treasury in 2024 awarded more than $2 billion in point-of-sale rebates for EVs
US senators visit key Ukrainian port city as they push for fresh sanctions on Russia
- The visit and the push for Congress to take up sanctions on Russia come at a crucial moment in the conflict
WASHINGTON: A delegation of US senators was returning Wednesday from a trip to Ukraine, hoping to spur action in Congress for a series of sanctions meant to economically cripple Moscow and pressure President Vladimir Putin to make key concessions in peace talks.
It was the first time US senators have visited Odesa, Ukraine’s third-most populous city and an economically crucial Black Sea port that has been particularly targeted by Russia, since the war began nearly four years ago. Democratic Sens. Jeanne Shaheen, Chris Coons, Richard Blumenthal and Sheldon Whitehouse made the trip. Republican Sen. Thom Tillis had planned to join but was unable to for personal reasons.
“One of the things we heard wherever we stopped today was that the people of Ukraine want a peace deal, but they want a peace deal that preserves their sovereignty, that recognizes the importance of the integrity of Ukraine,” Shaheen said on a phone call with reporters.
The visit and the push for Congress to take up sanctions on Russia come at a crucial moment in the conflict. Delegations for the two sides were also meeting in Switzerland for two days of US-brokered talks, but neither side appeared ready to budge on key issues like territory and future security guarantees. The sanctions, senators hoped, could prod Putin toward settling for peace, as the US has set a June deadline for settlement.
“Literally nobody believes that Russia is acting in good faith in the negotiations with our government and with the Ukrainians,” Whitehouse said. “And so pressure becomes the key.”
Still, legislation to impose tough sanctions on Russia has been on hold in Congress for months.
Senators have put forward a range of sanction measures, including one sweeping bill that would allows the Trump administration to impose tariffs and secondary sanctions on countries that purchase Russia’s oil, gas, uranium and other exports, which are crucial to financing Russia’s military. The Senate Foreign Relations Committee has also advanced a series of more-targeted bills that would sanction China’s efforts to support Russia’s military, commandeer frozen Russian assets and go after what’s known as Moscow’s “shadow fleet” of oil tankers being used to circumvent sanctions already in place.
Republican Sen. Lindsey Graham, who has co-sponsored the Senate’s sweeping sanctions and tariff legislation, also released a statement during the Munich Security Conference this weekend saying that Senate Majority Leader John Thune had committed to bringing up the sanctions bill once it clearly has the 60 votes needed to move through the Senate.
“This legislation will be a game changer,” Graham said. “President Trump has embraced it. It is time to vote.”
Blumenthal, who co-sponsored that bill alongside Graham, also said there is bipartisan support for the legislation, which he called a “very tough sledgehammer of sanctions and tariffs,” but he also noted that “we need to work out some of the remaining details.” Democrats, and a handful of Republicans, have been opposed to President Donald Trump’s campaign to impose tariffs around the world in an effort to strike trade deals and spur more manufacturing in the US
In the House, Democrats are opposed to the tariff provisions of that bill. Instead, a bipartisan group of lawmakers, led by Republican Rep. Brian Fitzpatrick, has proposed separate legislation that makes it more difficult for Trump to waive sanctions, but does away with the tariff provisions.
A separate bill, led by the top Democrat on the House Foreign Affairs Committee, Rep. Gregory Meeks, would bolster US military support for Ukraine by $8 billion. Democrats currently need one more Republican to support an effort to force a vote on that bill.
Once they return to the US, the senators said they would detail how US businesses based in Ukraine have been attacked by Russia. The Democrats are also hoping to build pressure on Trump to send more US weapons to Ukraine. “Putin understands weapons, not words,” Blumenthal said.
Still, the lawmakers will soon return to a Washington where the Trump administration is ambivalent about its long-term commitments to securing peace in Ukraine, as well as Europe. For now, at least, they were buoyed by the conversations from their European counterparts and Republican colleagues.
“We and the Republican senators who were with us in Munich spoke with one voice about our determination to continue to support Ukraine,” Coons said.
