The Drive American Act would incentivize the onshoring of domestic automotive manufacturing to high-wage factories which use American parts and labor.
WASHINGTON, D.C. – Senator JD Vance (R-OH) has introduced the Drive American Act, which would eliminate over $100 billion in existing electric vehicle (EV) subsidies and replace them with the America First Vehicle Credit to promote gas-powered vehicles made in the United States. As Senator Vance has repeatedly pointed out, the Biden administration’s existing EV subsidies penalize UAW workers who build popular, gas-powered vehicles and the American consumers who wish to buy them.
“Right now, the official policy of the Biden administration is to spend billions of dollars on subsidies for electric vehicles made overseas,” said Senator Vance. “If we’re subsidizing anything, it ought to be Ohio workers – not the green energy daydreams that are offshoring their jobs to China. We can secure a bright future for American autoworkers by passing this legislation and reversing the misguided policies of the Biden administration.”
The America First Vehicle Credit builds on the historic automotive content requirements of President Trump’s U.S.-Mexico-Canada Agreement (USMCA). It would provide up to $7,500 for new gas- or diesel-powered vehicles, including hybrids, based on a vehicle’s payload and seating capacity. To qualify, a vehicle must be assembled in the United States with American parts by highly paid American workers. The credit would apply for individuals earning less than $150,000 or married couples earning less than $300,000.
Jeep vehicles built by UAW workers in the Toledo Assembly Complex would qualify for The America First Vehicle Credit – if workers at the facility are given a significant raise.
- The Drive American Act repeals EV tax credits created or expanded by the Inflation Reduction Act, including: the Clean Vehicle Credit, the Credit for Previously Owned Electric Vehicles, the Credit for Commercial EVs, and the Alternative Fuel Vehicle Refueling Property Credit.
- As U.S. Senator for Delaware, Joe Biden supported the North Atlantic Free Trade Agreement (NAFTA), which led to the offshoring of hundreds of thousands of jobs. In the years since, many American auto manufacturers have resorted to building automobiles in Canada and Mexico rather than here at home.
- Read Senator Vance’s op-ed in The Toledo Blade: Biden EV agenda threatens U.S. auto industry