Honda Has Strong Words For Congress Over EV Tax Credits

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The Japanese automaker is fighting for the success of its next-gen EVs.

Encouraging widespread electric vehicle adoption requires many things to go right. Customers not only expect a good EV, but they want access to a reliable and easily accessible charging network. Incentives also play a big role in transitioning from an ICE vehicle, and it's this last point that has been a contentious issue of late. A few days ago, we reported on the latest proposed EV tax credits and how they could unfairly benefit American automakers. As it stands, only EVs from the likes of General Motors and Ford would qualify for an additional $4,500 for being a union-made vehicle. Foreign automakers are not impressed and Honda is the latest to speak out on the issue.

2018-2021 Honda Clarity Plug-In Hybrid Front View Driving Honda
2018-2021 Honda Clarity Plug-In Hybrid Rear View Driving Honda
Honda

Even though Honda doesn't have an EV on sale in the United States right now, the Japanese automaker clearly doesn't want to be at a disadvantage when this changes. The company aims to have electrified 100% of its lineup by 2040, and many of those EVs will be built at US plants.

"At Honda, we believe in freedom of choice for American consumers and fair treatment of all American autoworkers, with all of us working together to fight global climate change," said the automaker in a statement. "Don't Honda and Acura customers who want to purchase an electric vehicle deserve the same credit as customers buying one from a Detroit automaker?"

Toyota shares Honda's sentiments and recently released its own statement criticizing the plan.

2018-2021 Honda Clarity Plug-In Hybrid Charging Honda
2018-2021 Honda Clarity Plug-In Hybrid Badge Honda
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8 Legendary Land Rovers
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Honda went a step further by encouraging its customers to contact a member at Congress to oppose the proposed changes to the EV tax credits. Currently, the federal tax credit amounts to a maximum of $7,500 for new EVs or plug-in hybrids. The Honda Clarity PHEV was the most recent Honda to qualify for this incentive.

Honda says that experts agree that the federal tax credit is vital in convincing a majority of American consumers to make the move to an EV. If the new proposal's rules are implemented, the legacy Detroit automakers have a distinct advantage. For consumers, it means having to potentially choose between the EV they want most or one from a small group of automakers that offers the biggest tax credit. Hopefully, this is a decision no car shopper in the US has to make. At least, that's what Honda is fighting against.

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Honda
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2018-2021 Honda Clarity Plug-In Hybrid Badge
2018-2021 Honda Clarity Plug-In Hybrid Charging
2018-2021 Honda Clarity Plug-In Hybrid Front View Driving
2018-2021 Honda Clarity Plug-In Hybrid Rear View Driving
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