GMC Hummer EV Could Benefit Big Time From New Tax Credits

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But the plan remains controversial.

The topic of tax credits for new electric vehicles has been hotly debated this year. In July, we reported on proposed changes to EV tax credits that could raise the maximum amount to $12,500, up from $7,500 currently. However, only certain models would qualify for the $12,500 maximum depending on specific factors like where the cars are built.

The debate is likely to rage on following a newly updated bill proposed by Democrats in the US House of Representatives. This new bill proposes expanding the $12,500 tax credit to more expensive EVs, while also lowering the income limits for buyers who are eligible. While the bill maintains the $55,000 limit for sedans, it proposes raising the price of qualifying vans, SUVs, and trucks to $80,000, reports Reuters.

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2022 GMC Hummer Steering Wheel Design GMC

Previously, the pricing caps were $74,000 for trucks, $69,000 for SUVs, and $64,000 for vans. In addition, the new proposal denotes that the full EV tax credit applies to individual taxpayers reporting adjusted gross incomes of $250,000 or $500,000 for joint filers. That's a drop from $400,000 and $800,000 respectively.

If one looks at trucks alone, the newly proposed bill's cap of $80,000 would theoretically include vehicles like higher-spec versions of the Ford F-150 Lightning. The GMC Hummer EV, which starts at $79,995, would just about make the cut. The updated bill is expected to be voted on by the House in the days ahead but faces stern opposition. Foreign automakers have pushed back since qualifying for the full incentive would require the relevant EV to be a union-made vehicle, with a $4,500 incentive for such vehicles.

2022 Ford F-150 Lightning Driving Front Angle Ford
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Just days ago, Toyota harshly criticized this plan that would benefit the likes of Ford and General Motors, but that would rule out others like Tesla.

"What does this say to the American consumer?" said the statement from Toyota. "It says that if they want to buy an electric vehicle not made by Ford, General Motors, or Chrysler, they will have to pay an extra $4,500 - which is about $100 more per month over a four-year period."

Toyota isn't alone in its stance as 25 ambassadors have written to US lawmakers to oppose the proposed bill. Already, Teslas don't qualify for tax credits since the automaker has already sold over 200,000 EVs. The new proposal does, however, state that the phasing out of tax credits should be done away with. If the new bill is passed, some pricier EVs could become a lot more enticing to buyers, but foreign automakers will be unfairly excluded from the full tax credit.

2021-2022 Tesla Model X Plaid Driving Front Angle Tesla
2021-2022 Tesla Model X Plaid Rear Angle View Tesla
2021-2022 Tesla Model X Plaid Steering Wheel Design Tesla
Source Credits: Reuters

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