Senate Democrats have scrapped a $4,500 bonus tax credit for electric vehicles made with domestic union labor that was opposed by Senator Joe Manchin as they seek to wrap up negotiations on a spending deal.

“It’s gone,” Manchin said in an interview at the Capitol Tuesday.

The Build Back Better legislation passed last year in the House would have increased the $7,500 consumer tax credit to as much as $12,500, as part of a White House-backed effort to ensure that electric vehicles are “manufactured by workers with good jobs.” But the plan came under fire from Manchin, a West Virginia Democrat and swing vote in the evenly split Senate, as well as from non-unionized EV-maker Tesla Inc. and foreign-owned automakers such as Toyota Motor Corp. and Honda Motor Co.

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$4,500 Boost In EV Tax Credit For UNION Made Vehicles Gets REMOVED From Build Back Better Plan

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