Union-Friendly Electric Car Credit Predicted to Pass Budget Test

A labor-friendly electric vehicle tax credit is likely to withstand scrutiny by the Senate parliamentarian on whether it should be included in Democrats’ nearly $2 trillion tax and social spending plan, according to former Congressional budget staffers and policy analysts.

If that happens, and opponents like Sen. Joe Manchin (D-W.Va.) withhold support of the broader package, lawmakers will need to negotiate a change to the credit, although it’s unclear whether that will be necessary. The credit could also be chopped altogether.

The proposed $4,500 tax credit would be available to consumers who buy U.S.-made, union-assembled electric vehicles. It’s slated for ...