The American International Automobile Dealers Association on Sept. 27 launched an awareness campaign to highlight the employment and environmental consequences that would result from the severe limitations of a proposed new tax credit for electric vehicles.

"There are more than 50 EV models sold in the U.S., but Congress’s proposed new $4,500 tax credit will apply only to five union-made cars," said Cody Lusk, president and CEO of the AIADA. 

"This rule undermines consumer choice and competition, it treats non-union autoworkers and international dealers unfairly, and it absolutely runs counter to the goal of an EV tax credit, which is reducing carbon emissions by getting as many green vehicles on the road as possible."

The AIADA’s campaign is attempting to bring attention to the consequences of what it calls an unfair tax credit proposal, including:

• Fewer EVs will be sold because of the severe restrictions of the EV tax credit. This, in turn, will mean slower progress toward reducing America’s carbon emissions.

• The proposed tax credit threatens the livelihoods of American workers. The U.S. ecosystem of international autos — including dozens of non-union plants and thousands of dealerships — supports nearly 700,000 American jobs. The tax credit would lower sales of non-union international brand EVs, jeopardizing the jobs of Americans who work in that innovative and competitive sector.

• The proposed tax credit would benefit some regions of the country, such as the Midwest, at the expense of others, including southeastern states such as Alabama and Georgia. The tax credit would reduce payroll and economic activity in states and communities that provide a home for non-union auto plants.

"The solution is simple," Lusk said. "Congress should ensure the tax credit proposal applies to both union and non-union made EVs. It’s wrong for lawmakers to pick winners and losers among American workers."

Established in 1970, the AIADA is the national trade association representing America’s 9,400 international nameplate franchised automobile dealers.