Senator JD Vance Proposed Excessive Credits for Gas-Guzzling Trucks and SUVs That Would Cost the Country $34B
I have a confession, I didn’t realize Ohio Senator James Vance was also NYT bestselling memoirist JD Vance until Donald Trump chose him as his running mate for his third presidential election.
I read Hillbilly Elegy, in which a Marine Corps veteran who was raised by his grandmother in rural Ohio tries to launch a law career while caring for his mother, who’s addicted to drugs. I watched the movie adaptation with Glenn Close and Amy Adams. I was cheering for a NYT bestseller by a retired war correspondent. And as someone born in a small town, I was happy to see an award-winning movie portraying rustbelt/Appalachian culture faithfully. Then I forgot all about it.
Like most folks, I noticed when an Ohio Senate candidate called Donald Trump, “America’s Hitler,” and thought Oh, feisty! Later, I sat up and took note when a certain Senator James Vance rallied to cure the, “climate problem in our society,” begged for a “clean energy future” and lobbied for solar panels in Ohio. This is because I’ve argued that sustainable energy is bringing high-paying jobs to rural areas.
Senator Vance took office in 2022 and immediately criticized Biden’s EV tax credit for not stipulating that vehicles must be union-built to qualify. And honestly, I agreed. Then he introduced the Drive American Act, and my head exploded.
The bill proposed canceling EV tax credits and applying them instead to vehicles built in the U.S. by union workers. So far, so good. Then the America First Vehicle Credit goes way overboard. It piles on bonuses for larger (read: gas-guzzling) vehicles. So every gas or diesel vehicle (built in the U.S. by union workers) would get a $2,500 credit. A five seat sedan built by Hyundai in Alabama would get $3,500 because it has five seats. The bill adds another $500 for every 250 pounds of payload capacity or $1,000 for each additional seat. Only full-size trucks and seven-seat SUVs would claim the full $7,500.
This includes the GM and Ram trucks that are built in the U.S., all full-size Ford F-Series trucks, the Toyota Tundra, and all of their SUV variants (examples include the Suburban, Wagoneer, Explorer, and Sequoia).
First and foremost, there are a ton more ICE vehicles sold every year than EVs–even if we’re only considering the union-built ones made in the U.S. Jalopnik calculates that Senator Vance’s bill would add $34,968,000,000 to our national budget.
Second of all, the entire point of the EV tax credit is to subsidize the research and development costs of a new technology. Why? Because corporations react to quarterly profits, so sometimes the people need to come together and invest in longer-term solutions. With scientists telling us climate change is dangerous and caused by emissions, one wise solution would be good non-emissions vehicles. If they are cheap and people can afford to buy them, automakers will continue improving them.
We don’t need to increase the entire country’s tax burden to subsidize the research and development of full-frame trucks and SUVs. This is one vehicle segment Detroit is fantastic at building. Heck, despite making billions on F-150s and Expeditions, Ford’s CEO recognizes this is an excessive segment.
“We have to start to get back in love with smaller vehicles. It’s super important for our society and for EV adoption…We are just in love with these monster vehicles, and I love them too, but it’s a major issue with weight.”
Jim Farley, CEO of Ford Motor Company
Finally, Senator Vance’s bill is not in the best interest of the people of Ohio. GM shuttered its Lordstown Assembly Plant in Lordstown, Ohio. Then an EV startup moved in and reopened the facility and put the people back to work. Jeep’s building its popular plug-in hybrid 4xe Wrangler in Toledo, Ohio, and dealers say they can’t keep that vehicle on the lots. The most “American-made” vehicle is a Tesla. Lobbying for an EV company in Ohio would have the most long-term benefits for Vance’s constituents. At best, this bill is just a way to take a cheap shot at the EV tax credit and get some free publicity.
At worst, this excessive $34B burden on the country he has proposed is not just a publicity stunt. During his 2022 Senate campaign, J.D. Vance was one of the country’s top recipients of donations from the oil and gas sector. He’s publicly received nearly $300,000 in cash from the industry. At least we now know the price tag this one-time advocate of green energy places on his loyalty–and having a healthy planet to hand off to the next generation.