Who thought electric vehicles and unions would ever cross paths? Although unexpected, there are many exciting things to know about this unlikely combination, and not just because some federal tax credits may soon only apply to union-built or US-built EVs.
The only union-made electric vehicles in the United States are the Chevy Bolt and the 2022 Chevy Bolt EUV. However, more are expected to be released throughout 2022 and 2023, including the F150 Lightning, the Cadillac Lyriq, and the Chevy Silverado EV.
You’re probably wondering, “Why should I care about union-made electric vehicles in the United States-how much could the tax credit possibly be worth?” Union-made electric vehicles in the U.S. will receive up to $12,000 in tax credits! Let’s look at what you need to know to pick one of these vehicles.
What Does Union-Built Mean in This Context?
Unions are organizations created by workers who join forces to amplify their strength and voices within their workplace. Unions are typically democratic organizations with elected leaders. Workers can negotiate their wages, benefits, health and safety protocols, job training, and other related issues.
These organizations serve a crucial role in ensuring that management and coordinator roles treat their workers with respect and dignity. But regardless of how you feel about unions politically, it’s great to understand how they can help you out financially if you’re in the market for an electric vehicle.
What Electric Vehicles Are Union Made?
There are many union-made vehicles, including standard cars, electric, and hybrid models. We’ll list all of the union-made vehicles, whether electric or not, and even if this list is a bit out of date by the time you see it, it can still be used to get a feel for which automakers are generally producing union-built vehicles.
- Buick Enclave
- Cadillac CT4
- Cadillac CT5
- Cadillac Escalade
- Cadillac Escalade ESV
- Cadillac Escalade Hybrid
- Cadillac XT4
- Cadillac XT5
- Cadillac XT6
- Chevrolet Bolt (electric)
- Chevrolet Camaro
- Chevrolet Colorado
- Chevrolet Corvette
- Chevrolet Equinox
- Chevrolet Express
- Chevrolet Malibu
- Chevrolet Silverado Heavy Duty
- Chevrolet Silverado Light Duty (crew and double cab only)
- Chevrolet Silverado Medium-Duty Navistar (regular and crew cab)
- Chevrolet Sonic
- Chevrolet Suburban
- Chevrolet Tahoe
- Chevrolet Tahoe (police)
- Chevrolet Tahoe (special service)
- Chevrolet Traverse
- Chrysler 300
- Chrysler Pacifica
- Dodge Challenger
- Dodge Charger
- Dodge Durango
- Dodge Grand Caravan
- Ford E-Series (cut-away)
- Ford Edge
- Ford Escape
- Ford Expedition
- Ford Explorer
- Ford F Series
- Ford F-650/750
- Ford Ranger
- Ford Super Duty Chassis Cab
- Ford Mustang
- Ford Transit
- GMC Acadia
- GMC Canyon
- GMC Savana
- GMC Savana (cut-away)
- GMC Sierra Heavy Duty
- GMC Sierra Light Duty (crew and double cab only)
- GMC Yukon
- GMC Yukon Hybrid
- GMC Yukon XL
- Jeep Cherokee
- Jeep Gladiator
- Jeep Grand Cherokee
- Jeep Wrangler
- Lincoln Aviator
- Lincoln Continental
- Lincoln Corsair
- Lincoln Nautilus
- Lincoln Navigator
- Ram 1500 (classic model – DS)
- Ram 1500 (new model – DT)
Why This Number Will Likely Increase
As you can see, multiple automotive manufacturers utilize unions, and numerous vehicles have been made with the help of these organizations. This number is likely to increase over the coming years due to the recently passed Build Back Better Bill.
The Build Back Better Bill
The Build Back Better Bill was introduced in the 117th Congress to carry out elements of President Joe Biden’s Build Back Better Plan. The bill was initially proposed for $3.5 trillion and has since been negotiated to $2.2 trillion. The House of Representatives passed the Build Back Better Bill on November 19th, 2021.
Part of the bill includes cutting U.S. emissions by 50% by 2030. One of the ways the bill hopes to accomplish this is through tax credits provided to consumers who buy electric vehicles.
Tax Credit for Electric Vehicles
Part of the Build Back Better Bill includes a $7,500 tax credit for consumers who purchase electric vehicles through 2026. After 2026, only electric cars made in the U.S. will qualify for the credit.
Interestingly enough, the base credit will increase by $4,500 if the electric vehicle is made at a U.S. plant that operates under a union-negotiated collective bargaining agreement. However, the only qualified plants are owned by General Motors Co., Ford Motor Co., and Stellantis NV.
A potential tax credit of $12,000 is nothing to scoff at. The combined tax credit could take a new Chevrolet Bolt from around $32,000 to $20,000, making it an affordable vehicle for many consumers across the nation.
The $7,500 tax credit could also make electric cars like the Tesla Model 3 more affordable, reducing the retail price from around $48,000 to approximately $42,000.
Electric Vehicles to Keep an Eye On
We don’t blame you if you’re looking to cash in on a $7,500 to $12,000 electric vehicle tax credit in the coming years—this is a great time to purchase an electric vehicle.
However, you might be considering different models depending on your income level and circumstances. So, depending on the tax credit, here are a few electric vehicles to keep your eye on.
$7,500 Tax Credit
From now until 2026, you can receive a $7,500 tax credit when you purchase an electric vehicle. Remember that the full $7,500 tax credit is only available for full-electric cars. In addition, plug-in models can receive a tax credit that depends on the size of their batteries.
Your mileage will vary, but here’s a list of vehicles to get you started.
- Tesla Model 3: $44,990 – $58,990
- Kia Niro EV: $39,990 – $44,650
- Volkswagen ID.4: $40,760 – $48,940
- Hyundai Kona Electric: $37,390 – $45,600
- Nissan LEAF: $27,400 – $37,400
As you can see, most electric vehicles will cost around $45,000. However, you can decrease this number significantly with a tax credit of upwards of $7,500. For example, with the $7,500 tax credit, you can reduce the cost of a Nissan LEAF to around $20,000 or a fully-decked out Tesla Model 3 to about $50,000.
$12,000 Tax Credit
You can receive an additional $4,500 tax credit if you purchase an electric vehicle made in a U.S. plant under a union. This extra tax credit raises it to a total of $12,000. This is a significant increase and will dramatically reduce the cost of a new electric vehicle. However, there are only a few models that fall into this category.
- Chevy Bolt: $31,000 – $34,200
- 2022 Chevy Bolt EUV: $33,000 – $37,500
As you can see, only two cars on the market currently qualify for the total $12,000 tax credit. Fortunately, the $12,000 tax credit can reduce the costs of these cars from around $35,000 to about $22,000.
More Vehicles to Come
Currently, only the Chevy Bolt models qualify for the entire $12,000 tax credit. Fortunately, a few cars are expected to release throughout 2022 and beyond that will fall into this category.
The F150 Lightning, the GMC Hummer EV, the Cadillac Lyriq, and the Silverado EV are all expected to qualify for the full $12,000 tax credit.
The F150 Lightning is expected to release at the end of April 2022 for around $39,974 to upwards of $95,000. The GMC Hummer EV may not qualify due to expected starting prices of over $100,000.
The Cadillac Lyriq is expected to be released sometime in 2023, with orders beginning May 19th, 2022. The 2023 Cadillac Lyriq is expected to have a starting cost of around $60,000.
The new Chevrolet Silverado EV is expected to be released in the spring of 2023. The Silverado EV might be one of the more affordable upcoming electric vehicles, with a starting price expected to be around $40,000.