By Katie Lobosco, CNN Business
Updated 12:25 PM ET, Thu April 11, 2019

Washington (CNN Business)General Motors and Tesla sales could get a boost if a bill introduced this week by a bipartisan group of lawmakers to expand the electric car tax credit passes Congress.

Michigan Democrats Sen. Debbie Stabenow, Sen. Gary Peters and Rep. Dan Kildee joined with Tennessee Republican Sen. Lamar Alexander and Maine Republican Sen. Susan Collins to propose the legislation, which they say would increase production in electric vehicles and create jobs.

Currently, customers who buy electric cars receive a $7,500 tax credit. But it phases out after an automaker sells 200,000 vehicles.

Tesla (TSLA) was first to hit the cap last year and responded by cutting the price of its cars by $2,000. GM (GM) exceeded 200,000 vehicles sold earlier this year and has warned that sales of their plug-in cars, like the Chevrolet Bolt and Volt, could drop as the tax credit phases out.

The proposed legislation would raise the cap so that another 400,000 vehicles sold by each manufacturer will be eligible for a $7,000 tax credit. It would start phasing out after 600,000 vehicles are sold.

“At a time when climate change is having a real effect on Michigan, today’s legislation is something we can do now to reduce emissions and combat carbon pollution,” Stabenow said in a statement.

The proposal could get pushback from the Trump administration. White House economic adviser Larry Kudlow said in December that the president wants to end the electric vehicle tax credit, the Wall Street Journal reported.

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