House Build Back Better Bill Offers $12,500 Tax Rebate for Electric Vehicles Costing up to $74,000

The House version of President Joe Biden’s Build Back Better bill offers a tax credit for electric vehicles costing up to $74,000.

The bill would offer a series of additional tax credits for electric vehicles for up to $12,500.

Buyers get a $4,500 tax credit if they purchase union-made vehicles, putting electric car manufactures like Tesla, Toyota, and Honda at a competitive disadvantage with companies like Ford and General Motors who hire union labor. Elon Musk has previously criticized the special tax credit as a carveout for union lobbyists.

The bill does include price limits on electric vehicles eligible for the tax credit, but they increase depending on the style of the vehicle.

An electric van costing up to $64,000 is eligible for a tax credit as well as an electric SUV costing up to $69,000.

Electric pickups can cost up to $74,000 and still get a tax credit. Other vehicles are limited at $55,000.

Biden has praised the electric Ford F-150 pickup effusively and even drove an electric Jeep around at the White House.

The bill would provide a tax credit for even the upper-middle class.

The tax credit phases out for people making over $800,000 if filing a joint tax return.

President Biden promoted his tax rebate proposal on electric vehicles in a speech at the White House on Thursday.

“When you buy an electric vehicle, you can go all the way across America on a ‘single tank of gas,’ figuratively speaking,” he said. “It’s not gas; you plug it in.”