NATIONAL NEWS

Automakers ask Congress to lift electric vehicle tax cap

Jun 13, 2022, 11:06 AM | Updated: Jun 25, 2022, 8:54 pm
Electric vehicles recharge their batteries at the East Crissy Field charge station on March 09, 202...
Electric vehicles recharge their batteries at the East Crissy Field charge station on March 09, 2022 in San Francisco, California. With oil prices continuing to soar, shares for companies in the electric vehicle sector are rising as consumers look to trade their gas powered cars in for electric vehicles. (Photo by Justin Sullivan/Getty Images)
(Photo by Justin Sullivan/Getty Images)

NEW YORK (AP) — Major automakers are asking Congress to lift the cap on how many people would be offered tax credits if they buy a hybrid or fully electric vehicles.

In a letter to leaders of the Senate and House of Representatives on Monday, the chief executives of Ford, Toyota, GM and Stellantis asked that tax credits be extended to anyone who seeks to buy a qualified vehicle.

Currently the number of tax credits allowed are capped at 200,000 per company. General Motors and Tesla have already reached the cap and Toyota is close to it.

Automakers want the cap lifted until “the EV market is more mature,” they said, without giving a time frame.

“Eliminating the cap will incentivize consumer adoption of future electrified options and provide much-needed certainty to our customers and domestic workforce,” the CEOs wrote.

The request comes as Americans find themselves financially pinched from all directions by four-decade high inflation. Energy prices have been especially bad, with the average cost for a gallon of gas in the U.S. breaching $5 this weekend, according to the auto club AAA.

Automakers said Monday that the tax credit has allowed them to offer more affordable cars to people, helping accelerate the adoption of EVs. However, the companies said recent economic conditions and supply chain constraints have raised the cost of manufacturing EVs and those costs have to passed on to car buyers already paying more for almost everything.

President Joe Biden has attempted to ensure the supply of materials needed to produce electric vehicles continues to flow as the nation transitions away from fossil fuels.

Biden in April invoked the 1950 Defense Production Act to boost production of lithium and other minerals critical in powering electric vehicles.

Toyota’s plug-in RAV4 Prime small SUV with 42 miles of electric range earns the buyer a $7,500 credit, the largest available. The Prius Prime plug-in, with 25 miles of electric range, gets $4,500.

The letter was signed by GM CEO Mary Barra, Toyota CEO Ted Ogawa, Ford CEO Jim Farley and Stellantis CEO Carlos Tavares.

KSL 5 TV Live

Top Stories

National News

U.S. Rep. Bennie Thompson (D-MS) (C), Chair of the Select Committee to Investigate the January 6th ...
MARY CLARE JALONICK and FARNOUSH AMIRI, Associated Press

Jan. 6 panel calls surprise hearing to present new evidence

The House Jan. 6 panel says it is calling a surprise hearing on Tuesday to present “recently obtained evidence.”
13 hours ago
FILE: The Instagram app logo is displayed on an iPhone on Aug. 3, 2016, in London, England.  (Photo...
Rachel Metz, CNN Business

Instagram is testing AI that verifies your age with a selfie scan. It’s not perfect

Instagram is testing new ways to verify its youngest users' ages, including by using artificial intelligence that analyzes a photo and estimates how old the user is.
13 hours ago
Azuradee France, mother of the child found in a freezer in the basement of her Detroit home. (Credi...
Benjamin Schiller and Artemis Moshtaghian, CNN

Michigan mother charged with killing toddler son whose body was in freezer

A mother in Detroit has been charged with murder after the body of her 3-year-old son was found in a freezer Friday.
13 hours ago
The Supreme Court building in Washington, D.C., U.S., on Friday, Oct. 1, 2021. The court in its nex...
Associated Press

Supreme Court rules for inmates seeking reduced prison terms

The Supreme Court has made it easier for certain prison inmates to seek shorter sentences under a bipartisan 2018 federal law.
13 hours ago
Emergency lights...
Associated Press

Police say restaurant workers shot in argument over mayo

Police say a man who complained there was too much mayonnaise on his sandwich opened fire at a Subway sandwich shop in Atlanta, killing one employee and injuring another.
13 hours ago
Law enforcement officers stand inside the secure perimeter of the U.S. Supreme Court Building as pr...
JESSICA GRESKO, Associated Press

Supreme Court sides with coach who sought to pray after game

The Supreme Court has sided with a football coach from Washington state who sought to kneel and pray on the field after games.
13 hours ago

Sponsored Articles

hand holding 3d rendering mobile connect with security camera for security solutions...
Les Olson

Wondering what security solutions are right for you? Find out more about how to protect your surroundings

Physical security helps everyone. Keep your employees, clients, and customers safe with security solutions that protect your workplace.
Many rattan pendant lights, hay hang from the ceiling.Traditional and simple lighting....
Lighting Design

The Best Ways to Style Rattan Pendant Lighting in Your Home

Rattan pendant lights create a rustic and breezy feel, and are an easy way to incorporate this hot trend into your home decor.
Earth day 2022...
1-800-GOT-JUNK?

How Are You Celebrating Earth Day 2022? | 4 Simple Ways to Celebrate Earth Day and Protect the Environment

Earth Day is a great time to reflect on how we can be more environmentally conscious. Here are some tips for celebrating Earth Day.
Get Money Online...

More Ways to Get Money Online Right Now in Your Spare Time

Here are 4 easy ways that you can get more money online if you have some free time and want to make a little extra on the side.
Lighting trends 2022...

Lighting Trends 2022 | 5 Beautiful Home Lighting Trends You Can Expect to See this Year and Beyond

This is where you can see the latest lighting trends for 2022 straight from the Lightovation Show at the Dallas World Trade Center.
What Can't You Throw Away in the Trash...

What Can’t You Throw Away in the Trash? | 5 Things You Shouldn’t Throw in to Your Trash Can

What can't you throw away in the trash? Believe it or not, there are actually many items that shouldn't be thrown straight into the trash.
Automakers ask Congress to lift electric vehicle tax cap