Building on her successful effort to prohibit the Pentagon from procuring electric vehicle (EV) components from any entity that uses child or slave labor, U.S. Senator Joni Ernst (R-Iowa) is proposing an amendment to the Democrats’ tax and spend bill that will prevent taxpayer subsidies for luxury electric vehicles manufactured by forced labor.
“The price of buying a car has reached a record high and what is the Democrats’ answer? A tax break for wealthy coastal elites to buy electric vehicles produced with slave and child labor,” said Senator Ernst, a member of the Environment and Public Works Committee. “Without this measure in place, the Democrats’ bill will subsidize and incentivize forced labor. We shouldn’t be sacrificing a clean conscience in exchange for a ‘cleaner’ car.”
Ernst’s amendment prohibits tax credits for electric vehicles produced by or containing components produced by slave or child labor. Specifically, the amendment prohibits the disbursement of the Clean Vehicle Credit – a tax credit subsidized by U.S. tax dollars – for EVs containing parts from nations that are under investigation by the Biden administration for forced labor practices.