House Passes Bill Limiting EV Tax Credits
House Passes Bill Limiting EV Tax Credits

House Passes Bill Limiting EV Tax Credits

News summary

The U.S. House of Representatives has passed the End Chinese Dominance of Electric Vehicles in America Act, which imposes stricter regulations on the eligibility of electric vehicles (EVs) for federal tax credits, specifically targeting those with ties to Chinese companies. The bill, sponsored by Rep. Carol Miller (R-W.Va.), passed with a vote of 217 to 192, largely along party lines, with only seven Democrats supporting it. Critics, including some Democrats and the White House, argue that the legislation could hinder U.S. competitiveness in the EV market and lead to reduced investments in domestic manufacturing. The Alliance for Automotive Innovation warned that the bill could limit the number of EVs qualifying for tax credits and negatively impact the automotive industry. Supporters contend that the bill is necessary to prevent U.S. taxpayer dollars from benefiting foreign adversaries, particularly China. The legislation still requires Senate approval before it can be signed into law.

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