A group of U.S. Senators led by John Barrasso (R-Wyo.) last week proposed legislation to end the EV tax credits.
The legislation would end the $7,500 tax credit for new EV vehicles and the $4,000 for used EV vehicles. The bill would also stop federal investment in EV charging stations.
“The hard-earned money of taxpaying Americans should not cover the cost for the luxuries of the nation’s elite. Nor should we be allowing China to infiltrate our markets and undermine our supply chain,” said Senator Barrasso. “Repealing these reckless tax credits from the Biden administration once and for all will stop Washington from giving handouts to our adversaries and high-income individuals. Wyoming families should not foot the bill for expensive electric cars they don’t want and can’t afford.”
Senate Majority Leader John Thune (R-South Dakota) also signed on to the bill.
“American taxpayers should not have to foot the bill for the Biden administration’s sweeping windfall for electric vehicles,” said Thune.
U.S. Representative Jody Arrington (R-Texas) also introduced legislation to end the EV credit to the House of Representatives.
Under the current law, used clean vehicle credits are available on EVs, plug-in hybrids and fuel cell electric vehicles. For pre-owned qualifying vehicles, the credit may be 30 percent of the sale price up to $4,000. The vehicle must be $25,000, older than two model years, weigh less than 14,000 pounds and have a 7-kilowatt battery.
The purchaser must also meet several requirements. Consumers must fall in certain income thresholds ($150,000 or less for joint filers, $112,500 or less for head of household, and $75,000 or less for other filers).
Starting Jan. 1, 2024, eligible consumers could transfer the expected credit to a dealer for a down payment on the vehicle. The credit is only available when purchasing from a licensed dealer.
Inflation Reduction Act provided for the tax credits.
