Those buying union-manufactured vehicles are the winners, but not in the eyes of those who are against the tax bill.

Automotive companies Tesla and Toyota are at odds with Ford and the United Auto Workers (UAW) Union over a new proposal to award union-made electric vehicles (EV) with a pricey tax incentive. 

The 3.5 trillion dollar bill will benefit those whose vehicles are assembled in UAW represented plants, providing them with a $4,500 tax reduction.

General Motors, Ford and Chrysler’s parent-company Stellantis NV will reap the benefits of the bill, which is set to be taken up by the House Ways and Means Committee on Tuesday.

Under the proposal, some buyers may be eligible for $12,500 in maximum tax credit, which includes $500 for using batteries manufactured in the United States.

Additionally, tax credits will be phased out after car and truck manufactures hit 200,000 in EV sales.

Not good news for everyone

However, Toyota says the plan discriminates against American auto workers who don’t belong to a union and awards wealthy buyers with huge tax breaks. 

Tesla, along with international automakers, are also among the automotive companies that don’t have unions – they too in protest of the bill.

Elon Musk, Tesla Chief Executive took to Twitter to express his concern, adding to growing number of auto manufacturers unimpressed with the proposal.

“This is written by Ford/UAW lobbyists, as they make their electric car in Mexico. Not obvious how this serves American taxpayers.”

His response comes after Electric Vehicle news channel Whole Mars Catalog, asked for the CEO’s thoughts on the “already ridiculous” rule.

“My [jaw] was on the floor when they expanded it to $4,500 for unions and reduced the American-made to only $500,” the news blog tweeted. “They are clearly targeting one company here.”

“American-made should be the top priority! We need to be making cars of the future here, not losing our auto industry to Mexico and China.”

Written by Rebecca Borg