Canada says Biden electric vehicle tax credit could threaten Buffalo auto plants

WASHINGTON – To the Biden administration, offering a $12,500 tax credit to people who buy electric vehicles made in America is a common-sense way to "Build Back Better," which is why the measure was included in the massive but stalled bill of the same name.

But to the Canadian government, that tax credit is a violation of a trade treaty – and a direct threat to the future of the Buffalo area's two huge auto plants.

That's because the General Motors Tonawanda Engine Plant makes engines for vehicles assembled in Ingersoll, Ont., and the Ford Stamping Plant in Hamburg makes body parts for vehicles assembled in Oakville, Ont. Canadian officials contend that the tax break could destroy the Canadian auto industry, including those two factories in Ontario – as well as the nearby Buffalo-area plants that supply them.

"What happens if eventually, you're not making those cars in Ingersoll or Oakville?" asked Khawar Nasim, the Canadian consul general in New York, in a recent interview. "Do you think that those jobs are going to remain in New York? Because, you know, the greatest thing that you have there is proximity."

Read more: https://buffalonews.com/news/local/canada-says-biden-electric-vehicle-tax-credit-could-threaten-buffalo-auto-plants/article_3e07e1b8-5f55-11ec-9dca-eb0b93b82a15.html#tracking-source=home-top-story-1