A clause in the “Build Back Better” Act grants a tax credit of up to $12,500 to buyers of electric vehicles other than Tesla. It is another example of Joe Biden and the Democratic Party being held in joint captivity by strong teachers and labor organizations. Electric automobiles built in unionized American facilities are eligible for the total $12,500 rebate. If Tesla is the only option, your tax credit will be restricted to $7,500. Under the new credit, electric and plug-in hybrid cars will be eligible for a credit of up to $7,500. A unionized auto factory will qualify for an extra $4,500 credit.
On Wednesday, the need to incorporate a pro-union component in a bill signed into law by President Joe Biden was discussed with General Motors and the United Auto Workers (UAW). Electric vehicles must be under a specific price limit to qualify for tax credits under Biden’s BBB (Build Back Broke) program. The price limit for all other automobiles is $55,000.
The provision is a tax credit, not a refund, up to federal income tax payable. Taxpayers must also meet a certain income threshold to qualify for the credit: $500,000 for married couples and $250,00 for single purchasers. “It’ll be deducted directly from a loan or the vehicle’s price,” said analyst Kristin Dziczek.
“I want those jobs here in Michigan,” President Joe Biden boasted about the EV idea during a visit to a UAW job training center in October. “I’m going to put my money on the United Autoworkers and other labor organizations, given that Tesla founder and CEO Elon Musk isn’t on the official Democrat Christmas card list.”
Climate change, renewable energy, and fossil fuels, as well as taxpayer relief and well-paying employment, have less to do with this clause than delivering what the UAW demands. The worst thing about the Democrat Party in instances like these blatant pandering to labor unions is how completely deceptive it is.