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GM, Ford Extra EV Credits At Risk In Senate Review

  • Measure in House-passed spending plan favors union-built cars
  • Changes also discussed after Senator Manchin raised opposition
GMC Hummer electric vehicles on the production line at General Motors' assembly plant in Detroit, Michigan.

GMC Hummer electric vehicles on the production line at General Motors' assembly plant in Detroit, Michigan.

Photographer: Emily Elconin/Bloomberg

A Biden-backed proposal to give an extra tax break for the purchase of electric cars made in the U.S. with union workers will undergo a review by the Senate parliamentarian who will determine whether it qualifies under budget rules to move as part of President Joe Biden’s nearly $2 trillion economic package.

The plan to offer $4,500 more in tax credits to consumers who buy those vehicles has drawn vehement opposition from a variety of people, including Tesla Inc. Chief Executive Officer Elon Musk, Senator Joe Manchin and trade officials in Canada, Mexico and the European Union.