The new plan to encourage Americans to buy more electric vehicles built in North America, instead of just the United States, has cleared its tallest hurdle.
After a marathon voting session that lasted more than 24 hours, the U.S. Senate finally approved the new Inflation Reduction Act of 2022.
Vice-President Kamala Harris had to break a 50-50 tie to pass the legislation, a dramatically smaller version of President Joe Biden’s signature $2-trillion climate and social spending package.
The original proposal reserved the richest tax credits for vehicles assembled in the U.S. with union labour — a plan experts say would have kneecapped Canada’s auto industry.
But Senate Majority Leader Chuck Schumer reached a deal with holdout West Virginia Sen. Joe Manchin on a version of the bill that extended the credits to vehicles built in Canada…