Reps. Sewell, Cleaver, and Swalwell Introduce Bill to Ensure U.S. Car Buyers and Automakers Fully Benefit from Cost-Cutting Tax Credits
November 4, 2022
Washington, D.C. — This week, U.S. Reps. Terri Sewell (AL-07) Emanuel Cleaver (MO-05), and Eric Swalwell (CA-15) introduced the Affordable Electric Vehicles for America Act which would ensure that car buyers and automakers in the United States—and particularly those in Alabama—may immediately and fully benefit from the cost-cutting and job-creating provisions of the Inflation Reduction Act (IRA), including tax credits that will lower the costs of electric vehicles. The bill would create a phase-in for the electric vehicle (EV) sourcing and manufacturing requirement provisions for automakers that was included in the final version of the IRA.
“Democrats’ historic Inflation Reduction Act includes critical tax credits that are bringing down the cost of electric vehicles and making them more accessible to working and middle class Alabamians, all while accelerating our transition to a clean energy economy,” said Rep. Sewell. “The Affordable Electric Vehicles for America Act is a win-win for Alabama, ensuring that automakers and car buyers alike can take advantage of these tax credits immediately. My Democratic colleague and I will continue working to tackle inflation and lower costs!”
“I’m proud to introduce the Affordable Electric Vehicles for America Act with Congresswoman Sewell as we seek to lower energy costs for American families, create good-paying manufacturing jobs here at home, and accelerate our nation’s transition away from costly fossil fuels and toward affordable, clean vehicles,” said Rep. Cleaver. “Our legislation takes important steps to make the historic electric vehicle tax credits passed in the Inflation Reduction Act immediately accessible to consumers, particularly working- and middle-class Americans who would like to purchase an electric vehicle but need the federal credit to do so. As oil companies insist on continuing their exorbitant price-gouging of American families at the pump, these tax credits offer hardworking Americans immediate and significant financial assistance to help them purchase a vehicle that is better both for the environment and their wallets. This bill would be a major win for consumers, auto-workers, and businesses alike, and I will work with my colleagues to ensure it is signed into law by President Biden.”
The Affordable Electric Vehicles for America Act would delay the IRA’s phase-in period for automakers to follow specific sourcing requirements for their EVs in order for car buyers to qualify for the federal tax credit. These requirements include: requiring the EVs to be manufactured in North America; requiring EV batteries to be made domestically; and mandating that critical minerals used in battery production are only sourced domestically or from nations with whom America has a free trade agreement. Alabama automakers need additional time to meet these new on-shoring requirements and bring planned domestic EV facilities online, including the forthcoming Hyundai EV facility scheduled to open in 2025 in Bryan County, GA.
Companion legislation was introduced in the Senate by Senator Reverend Raphael Warnock (D-GA).
“The Affordable Electric Vehicles for America Act will lower costs and provide consumers more options when purchasing an electric vehicle, while also supporting good-paying jobs across Georgia and our country,” said Sen. Rev. Warnock. “I’m focused squarely on helping car buyers save money and helping car manufacturers who do business in our state thrive. That’s why I’m pleased to partner with Representatives Sewell and Cleaver to get this bill over the finish line.”
Bill text is available here.