Rep. Ro Khanna Rohit (Ro) KhannaThe Hill Interview: Jerry Brown on climate disasters, COVID-19 and Biden's 'Rooseveltian moment' Congress needs to prioritize government digital service delivery DeJoy defends Postal Service changes at combative House hearing MORE (D-Calif.) said Monday that he's planning to introduce legislation in the coming weeks to expand the electric vehicle tax credit and link it to domestic manufacturing, calling the bill a way to help both the environment and the economy.

"That's a pretty concrete application of how the Green New Deal can create jobs in the United States," Khanna, the first vice chairman of the Congressional Progressive Caucus, told reporters.

Under current law, people who purchase new electric vehicles can receive a tax credit of up to $7,500. The amount of the credit phases out after a manufacturer has sold more than 200,000 electric vehicles in the United States.

In recent months, the IRS has announced that Tesla and General Motors (GM) have each sold more than 200,000 vehicles eligible for credits of $7,500, so those who purchase Tesla electric vehicles after Jan. 1 and those who purchase GM electric vehicles after April 1 will receive smaller credit amounts.

ADVERTISEMENT

Khanna said that under his legislation there would no longer be a cap of 200,000 and the credit would be fully refundable at the time of purchase, but the credit would be linked to automobile companies producing vehicles in the United States.

The legislation comes after GM closed a plant in Lordstown, Ohio, last month, drawing criticism from President Trump Donald John TrumpOmar fires back at Trump over rally remarks: 'This is my country' Pelosi: Trump hurrying to fill SCOTUS seat so he can repeal ObamaCare Trump mocks Biden appearance, mask use ahead of first debate MORE and lawmakers on both sides of the aisle.

"Instead of Trump yelling at the GM CEO on Twitter to open up factories, which has no effect other than shoring up his base, this would say to GM, open up those factories and you can make electric SUVs because the government is actually going to help subsidize that," Khanna said.

Trump's fiscal 2020 budget proposes repealing the electric vehicle tax credit, which the administration estimates would reduce the deficit by $2.5 billion over 10 years.

The legislation also comes as leading progressives have championed a Green New Deal to reduce greenhouse gas emissions and create green jobs. Khanna said that his bill would be a specific example of how to boost jobs while also benefiting the environment.

"What we're interested in doing is putting some very concrete suggestions on what win-wins would look like for industry and jobs and the environment, so that we can cut through the noise and misinformation campaign that the Republicans have been waging against the Green New Deal," he said.