Why 11 Republican governors are opposing EV tax credit plan

Kildee’s proposal would offer an added $4,500 for EVs assembled in U.S. factories represented by a labor union.

Sen. Debbie Stabenow, D-Mich., led an earlier proposal in the Senate that also would tie added EV tax credits to automobiles assembled in unionized U.S. factories.

“We are unable to help any proposal that produces a discriminatory setting in our states by punishing autoworkers and automobile businesses since the employees in their vegetation selected not to unionize,” the governors wrote in the letter.

“By placing selected automobiles at a value disadvantage, this legislation works towards our states, undercuts our residents and negatively impacts the U.S. economy,” they wrote. “Congress really should not enact proposals that favor cars manufactured by one particular get the job done drive above a different, specifically when undertaking so substantially boundaries consumer option and undermines bigger carbon emission reduction targets.”

The governors who signed the letter to Home Speaker Nancy Pelosi, Minority Chief Kevin McCarty, Senate Bulk Leader Chuck Schumer and Minority Chief Mitch McConnell are from Alabama, Arizona, Arkansas, Florida, Ga, Indiana, Mississippi, Oklahoma, South Carolina, Tennessee and Texas.

Michigan Gov. Gretchen Whitmer, a Democrat, did not signal the letter. Her state is household to the UAW.

The group is urging Congress to “consider the expenditure and work produced by all automakers — nonunion stores involved” as they consider the proposals.

The governors’ letter comes right after a team of extra than 100 House Democrats — including Michigan Rep. Debbie Dingell — urged Pelosi this thirty day period to continue to keep the union-constructed provision in the trillion-bucks investing invoice.

In September, leading U.S. executives from 12 global automakers which include Toyota, Honda and Volkswagen pressed Household lawmakers to help broader tax credits for EVs in the monthly bill and to oppose “procedures that gradual development towards assembly our nation’s local weather ambitions.”

The American Worldwide Auto Dealers Association, which signifies more than 9,000 worldwide-nameplate dealers in the U.S., also urged Home leaders to oppose the EV tax credit rating proposal in a separate letter despatched past month.

The UAW, which represents U.S. autoworkers at Basic Motors, Ford and Stellantis, has urged Congress to go the reconciliation monthly bill with the “Kildee/Stabenow provision” on EV tax credits.