Lexus announced it is challenging the Affordable Care Act’s subsidies for its premium tax credit, a move that comes as the automaker faces an onslaught of legal action from the government over its subsidies for the new electric vehicle.
In a news release Thursday, the company said it filed a federal lawsuit in the Southern District of New York, which has jurisdiction over its $3,000 premium credit.
The suit claims the law violates the Administrative Procedure Act, which provides for legal remedies in cases that arise before the Court.
Lexus is also challenging a provision of the law that requires the Department of Health and Human Services to make a determination on its cost-sharing subsidies, a policy that is expected to cost it $1 billion.
The company says it expects to spend $1.6 billion in 2019, the first year of the premium credit’s coverage.
The automaker has not provided a dollar figure.
Lexuses spokeswoman Andrea Parejko told CNNMoney the lawsuit is a matter for the US District Court.
Lexus did not immediately respond to a request for comment.
The automaker’s premium credit is an important lifeline for Lexus, which faces financial challenges as its vehicle portfolio declines.
The company expects to lose more than $2 billion in its 2019 fiscal year as a result of the subsidy cut.