Updated reconciliation text includes electric vehicle tax credit opposed by Manchin

Preliminary Senate Finance Committee text for the social spending and climate bill released over the weekend retains a tax credit for union-made electric vehicles, despite objections to the provision by Sen. Joe Manchin (D-W.Va.).

The preliminary text released by Chairman Ron Wyden (D-Ore.) includes a $4,500 credit for electric vehicles domestically produced in unionized facilities. The same provision was included in the House version of the bill passed in November. The text is not final and has not been submitted to the Senate parliamentarian.

The text released by the Finance Committee also retains a provision from the House bill that would increase tax incentives for use of carbon-capture technology, bringing it from $50 to $85 per ton of carbon pulled.

“Our package is historic. It would create good-paying jobs, lower the cost of raising a family, combat the climate crisis and reduce energy bills, build more affordable housing, and cut health care costs for families and seniors,” Wyden said in a statement.

Manchin, an essential vote in the 50-50 upper chamber, has spoken out against the tax credit for union-made electric vehicles in recent weeks, saying at a Toyota event in November that Congress “shouldn’t use everyone’s tax dollars to pick winners and losers.” However, the inclusion of the provision in the early text suggests that Wyden, one of the chamber’s climate hawks, will at least attempt to include the tax credit in the final Senate bill.

As recently as Dec. 1, Sen. Debbie Stabenow (D-Mich.), another backer of the provision, told reporters negotiations over the credit were ongoing. “At this point, I’m not sure where this is going to land,” she said.

Several other Senate panels are expected to release their own newest versions of the text in the days ahead, including the Environment and Public Works and the Energy and Natural Resources committees.