Masse pushes feds to match US incentives for electric vehicles

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Under the Inflation Reduction Act announced in the United States, there is a tax incentive for Americans of US$7,500 if battery components are manufactured, mined or processed with critical North American minerals. The legislation also proposed a new US$4,000 incentive for Americans who purchase used electric vehicles.

“I commend the Americans for recognizing the importance of the North American auto industry in this new proposal which will include Canadian batteries and vehicles, including our very own Windsor-built Chrysler Pacifica,” Masse said.

“I hope the Canadian government will see the need to act to help Canadian consumers and develop a long-term plan for the industry.

Masse, his party’s critic for industry and international trade, made the request Friday in a letter to Prime Minister Justin Trudeau and relevant ministers.

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“With the current rate of inflation, so many Canadians are just trying to make ends meet and electric vehicles aren’t a priority if you can’t put food on the table, pay the prescriptions or pay the rent,” Masse said in his letter.

“I call on the Canadian government to align with the U.S. proposals for electric vehicles as a starting point in meeting this government’s zero-emission light-duty vehicle (ZEV) sales targets for 2026, 2030 and 2035.”

Masse made his request on the heels of a deal reached this week by Democratic U.S. Senator Chuck Schumer and Senator Joe Manchin to scrap a tax credit scheme that favored U.S.-made electric vehicles under US President Joe Biden’s Buy America policy.

An amendment to Joe Biden’s climate and health bill will expand the credits to include all North American auto-related products, which has brought huge relief to Canadian automakers and auto parts suppliers.

Biden, under Buy American, had wanted to save tax incentives for electric vehicles only assembled in the United States with unionized workers there.

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