Chairs Hoyer, Dingell Send Letter Warning Speaker Johnson Not to Cut Jobs, Damage America's Electric Vehicle Sector
March 10, 2025
WASHINGTON, DC – Congressman Steny H. Hoyer (MD-05), Chair of the Regional Leadership Council, and Congresswoman Debbie Dingell (MI-06), Chair of the House Democratic Policy and Communications Committee, led House Democrats in sending a letter to Speaker Johnson urging House Republicans not to slash Inflation Reduction Act's tax credits supporting electric vehicles (EVs) through the budget reconciliation process. This letter follows Ford CEO Jim Farley's comments that Republicans' proposed tax credit repeal would lead to thousands of layoffs across the country.
"Repealing these credits would have negative consequences for businesses and workers across our economy," said the Members. "Republicans ought to do everything they can to keep these tax credits intact, considering that roughly 84 percent of the private investments in EV and battery manufacturing announced since the IRA became law were made in congressional districts currently represented by a Republican. Indeed, of the 25 districts that have seen the greatest private investment in these areas since the IRA became law, 21 are currently represented by a Republican. Additionally, 68,467 jobs connected to these new projects are in Republican-held House districts."
The full text of the letter is included below, as well as the full list of signers:
Dear Speaker Johnson:
We write to urge you not to repeal the tax credits supporting electric vehicles established in the Inflation Reduction Act through the budget reconciliation process. Repealing these credits would have negative consequences for businesses and workers across our economy.
When Congress enacted these tax credits in the IRA, their costs were offset and they were made permanent, giving certainty to businesses and consumers alike. Eliminating them now to pay for tax cuts for the wealthiest individuals, as Republicans have proposed, would raise costs for American consumers and strike a devastating blow to the American auto industry. Ford Motor Company CEO Jim Farley made it clear recently: “we’ve already sunk capital – even though we’ve rationalized it – in battery production and assembly plants all through Ohio, Michigan, Kentucky, and Tennessee. And many of those jobs will be at risk if the IRA is repealed.”
American automakers have built business plans around the IRA’s tax credits for EV battery manufacturing. The IRA established a tax credit of $35 per kilowatt-hour (kWh) for domestically produced battery cells and $10 per kWh for domestically produced battery modules, as well as a ten percent cost credit for mining and producing critical minerals and components for batteries. Additionally, the IRA included up to $7,500 in tax credits for buyers of clean vehicles like plug-in EVs.
Together, these tax credits for EV manufacturers and buyers led American EV sales to quadruple under the Biden Administration and continue to fuel historic investment in American manufacturing. Businesses announced at least $112.9 billion in private investments in EV and battery manufacturing since the IRA’s passage. They also announced 106,500 new jobs in connection with those investments and are predicted to announce hundreds of thousands more in the years to come, not to mention all the other positive impacts for American businesses up and down the supply chain.
Republicans ought to do everything they can to keep these tax credits intact, considering that roughly 84 percent of the private investments in EV and battery manufacturing announced since the IRA became law were made in congressional districts currently represented by a Republican. Indeed, of the 25 districts that have seen the greatest private investment in these areas since the IRA became law, 21 are currently represented by a Republican. Additionally, 68,467 jobs connected to these new projects are in Republican-held House districts.
Repealing these IRA tax credits puts these jobs and investments at risk. Mr. Farley said that in addition to the Trump Administration’s tariffs, cutting these credits would “blow a hole in the U.S. [auto] industry that we have never seen.” As the U.S. tries to remain competitive with China in the EV market and all sectors of the economy, our economy’s future depends on these critical investments in the industries that will define the twenty-first century.
Sacrificing these EV tax credits just to help the wealthiest individuals get out of paying their fair share in taxes will cost Americans their jobs and American businesses their revenue. We urge you to change course and work with Democrats to ensure that American workers and manufacturers can Make It In America.
Signers Include: Barragán, Nanette; Brownley, Julia; Carbajal, Salud; Casten, Sean; Cisneros, Gilbert; Cleaver, Emanuel; Cohen, Steve; Connolly, Gerald; Davis, Danny; DeSaulnier, Mark; Dingell, Debbie; Fernandez, Teresa; Foster, Bill; Foushee, Valerie; Grijalva, Raúl; Jayapal, Pramila; Johnson, Henry; Khanna, Ro; Levin, Mike; McBride, Sarah; McGovern; Mullin, Kevin; Norton, Eleanor; Olszewski, Johnny; Panetta, Jimmy; Rivas, Luz; Scanlon, Mary Gay; Scholten, Hillary; Sorensen, Eric; Stevens, Haley; Takano, Mark; Thanedar, Shri; Tlaib, Rashida; Thompson, Mike; Titus, Dina; Tokuda, Jill.
"Repealing these credits would have negative consequences for businesses and workers across our economy," said the Members. "Republicans ought to do everything they can to keep these tax credits intact, considering that roughly 84 percent of the private investments in EV and battery manufacturing announced since the IRA became law were made in congressional districts currently represented by a Republican. Indeed, of the 25 districts that have seen the greatest private investment in these areas since the IRA became law, 21 are currently represented by a Republican. Additionally, 68,467 jobs connected to these new projects are in Republican-held House districts."
The full text of the letter is included below, as well as the full list of signers:
Dear Speaker Johnson:
We write to urge you not to repeal the tax credits supporting electric vehicles established in the Inflation Reduction Act through the budget reconciliation process. Repealing these credits would have negative consequences for businesses and workers across our economy.
When Congress enacted these tax credits in the IRA, their costs were offset and they were made permanent, giving certainty to businesses and consumers alike. Eliminating them now to pay for tax cuts for the wealthiest individuals, as Republicans have proposed, would raise costs for American consumers and strike a devastating blow to the American auto industry. Ford Motor Company CEO Jim Farley made it clear recently: “we’ve already sunk capital – even though we’ve rationalized it – in battery production and assembly plants all through Ohio, Michigan, Kentucky, and Tennessee. And many of those jobs will be at risk if the IRA is repealed.”
American automakers have built business plans around the IRA’s tax credits for EV battery manufacturing. The IRA established a tax credit of $35 per kilowatt-hour (kWh) for domestically produced battery cells and $10 per kWh for domestically produced battery modules, as well as a ten percent cost credit for mining and producing critical minerals and components for batteries. Additionally, the IRA included up to $7,500 in tax credits for buyers of clean vehicles like plug-in EVs.
Together, these tax credits for EV manufacturers and buyers led American EV sales to quadruple under the Biden Administration and continue to fuel historic investment in American manufacturing. Businesses announced at least $112.9 billion in private investments in EV and battery manufacturing since the IRA’s passage. They also announced 106,500 new jobs in connection with those investments and are predicted to announce hundreds of thousands more in the years to come, not to mention all the other positive impacts for American businesses up and down the supply chain.
Republicans ought to do everything they can to keep these tax credits intact, considering that roughly 84 percent of the private investments in EV and battery manufacturing announced since the IRA became law were made in congressional districts currently represented by a Republican. Indeed, of the 25 districts that have seen the greatest private investment in these areas since the IRA became law, 21 are currently represented by a Republican. Additionally, 68,467 jobs connected to these new projects are in Republican-held House districts.
Repealing these IRA tax credits puts these jobs and investments at risk. Mr. Farley said that in addition to the Trump Administration’s tariffs, cutting these credits would “blow a hole in the U.S. [auto] industry that we have never seen.” As the U.S. tries to remain competitive with China in the EV market and all sectors of the economy, our economy’s future depends on these critical investments in the industries that will define the twenty-first century.
Sacrificing these EV tax credits just to help the wealthiest individuals get out of paying their fair share in taxes will cost Americans their jobs and American businesses their revenue. We urge you to change course and work with Democrats to ensure that American workers and manufacturers can Make It In America.
Signers Include: Barragán, Nanette; Brownley, Julia; Carbajal, Salud; Casten, Sean; Cisneros, Gilbert; Cleaver, Emanuel; Cohen, Steve; Connolly, Gerald; Davis, Danny; DeSaulnier, Mark; Dingell, Debbie; Fernandez, Teresa; Foster, Bill; Foushee, Valerie; Grijalva, Raúl; Jayapal, Pramila; Johnson, Henry; Khanna, Ro; Levin, Mike; McBride, Sarah; McGovern; Mullin, Kevin; Norton, Eleanor; Olszewski, Johnny; Panetta, Jimmy; Rivas, Luz; Scanlon, Mary Gay; Scholten, Hillary; Sorensen, Eric; Stevens, Haley; Takano, Mark; Thanedar, Shri; Tlaib, Rashida; Thompson, Mike; Titus, Dina; Tokuda, Jill.