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Canadian electric vehicle overview:
- Who: U.S. lawmakers have included Canadian-assembled vehicles in new legislation that would give consumers a tax credit on electric vehicles.
- Why: The tax credit was added to the Inflation Reduction Act to encourage the adoption of electric vehicles, but Canadian-assembled vehicles were only included at the last minute.
- Where: The bill is going through the U.S. Congress.
U.S. lawmakers have included Canadian-assembled vehicles in new legislation that could give consumers a tax credit on electric vehicles (EVs) if passed.
On Aug. 4, U.S. lawmakers scrapped part of a large incentive package for electric vehicles that would have excluded vehicles assembled in Canada from a proposed consumer tax credit, CBC reports. The incentive package is part of the proposed Inflation Reduction Act.
The act includes a proposed $369 billion in new spending on energy- and climate-related initiatives. One of those initiatives is a $7,500 tax credit for consumers buying “clean vehicles.”
Canadian electric vehicle industry reps lobbied to include nation’s cars
A group of Canadian industry representatives, government officials and diplomats lobbied U.S. lawmakers to get Washington to include Canadian-assembled cars in the credit.
Canada’s Automotive Parts Manufacturers’ Association CEO Flavio Volpe, who was part of the lobby group, told CBC the importance of the proposed amendment could not be overstated.
Coupled with the hundreds of millions of dollars the Canadian government is funneling into EV and battery manufacturing, it should give the Canadian EV sector the boost it needs, he added.
Although Canadian consumers won’t directly benefit from the tax credit, the industry hopes it will encourage manufacturers to make new investments in EV in Canada to meet demand on both sides of the border.
Around 5.6% of new car sales in the United States are electric and about 12.6% are electric and plug-in hybrid. In Canada, it’s 5.8% and 7.7%, respectively, CBC reports.
The credit and investment measures aimed at expanding the clean energy sector and spurring adoption of EVs are part of a bill that aims to revive an economy struggling to recover from 9.1% inflation.
The Senate is expected to vote on the bill next week before it goes to the Democratic-controlled House of Representatives.
In other Canadian electric vehicle news, in February, 2,084 2021-2022 Tesla Model 3, Model S and Model X and 2020-2022 Model Ys were recalled due to the electric vehicles suffering from a loss of cabin heating in cold temperatures.
Meanwhile, BMW is facing a class action lawsuit alleging it overstates the driving range of some of its i3 electric passenger vehicles in cold weather, a new class action lawsuit alleges.
What do you think about U.S. tax credits potentially increasing Canadian electric vehicle manufacturing? Let us know your thoughts in the comments!
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2 thoughts onU.S. tax credit could increase Canadian electric vehicle production
Canadians should receive a discount on vehicles produced in Canada!
I think Canadians should be getting a tax cut in USA dollars and be allowed to get a discount on electric vehicles due to this as well as the cost of electric vehicles should be lower than non electric vehicles considerably lower due to the requirement of having one by 2030 in Canada