Bill with revamped EV tax credit passes Senate, heads to House

The Senate passed a landmark tax, climate and health-care bill, speeding a slimmed-down version of President Joe Biden’s domestic agenda on a path to becoming law after a year of Democratic infighting that the White House was unable to control.

The bill allows roughly $374 billion in climate and energy spending such as expanded tax credits for renewable energy projects. It ends per-manufacturer limits for the $7,500 tax credit for electric vehicle purchases, a boost for electric vehicle makers. But the vehicles will have to be built in North America and carmakers will have to quickly end a reliance on China for the battery supply chain. Some automakers such as Ford Motor Co. and General Motors lobbied to make changes to the credit.

The vote on the bill was 51 Democrats in favor to 50 Republicans against, with Vice President Kamala Harris casting the tie-breaking vote after an overnight marathon of votes on amendments. It now goes to the House, where the Democratic majority is expected to pass it on Friday. 

“I am confident the Inflation Reduction Act will be one of the defining feats of the 21st century,” Majority Leader Chuck Schumer said before the vote. 

Democrats called the bill the largest investment in fighting climate change ever made in the U.S., and it’s projected to help cut greenhouse gas emissions by about 40 percent from 2005 levels by the end of the decade. They applauded and hugged during the vote on final passage.