Bill introduced to stop electric vehicle tax credits

Senate Republicans have introduced legislation to end the federal electric vehicle and charging stations tax credit.

The Eliminating Lavish Incentives to Electric (ELITE) Vehicles Act — led by U.S. Senator John Barrasso, R-Wyoming — stops taxpayer money from subsidizing the purchase of luxury electric vehicles for high-income individuals and corporations, U.S. Senator Shelley Moore Capito, R-W.Va., announced Friday.

“There is no reason that U.S. taxpayers should be bankrolling luxury electric vehicle purchases for wealthy individuals or foreign entities,” Capito said. “This commonsense legislation dismantles loopholes that are artificially supporting the electric vehicle industry and sidestepping tax credit guidelines at the expense of American citizens. I’m proud to join my colleagues and introduce this legislation to remove the Biden administration’s misguided influence on the expensive electric vehicle industry.”

This bill specifically repeals the $7,500 tax credit for new electric vehicles (EVs), eliminates the tax credit for purchasing used EVs, wipes out the federal investment tax credit for electric vehicle charging stations, and closes the “leasing loophole” that has allowed certain taxpayers and foreign entities to evade restrictions on EV incentives, according to the bill.

Capito said this legislation would also prevent China from exploiting loopholes and circumventing guardrails to access U.S. tax credits associated with electric vehicles.

In addition to Senators Capito and Barrasso, the legislation is co-sponsored by: U.S. Senators Mike Braun, R-Ind.; Tom Cotton, R-Ark; Kevin Cramer, R-N.D.; Steve Daines, R-Mont.; Joni Ernst, R-Iowa; John Hoeven, R-N.D; James Lankford, R-Okla, Mike Lee, R-Utah, Cynthia Lummis, R-Wyoming; Roger Marshall, R-Kan.; Pete Ricketts, R-Neb; Jim Risch, R-Idaho; Mike Rounds,R-S.D; Marco Rubio, R-Fla.; Eric Schmitt, R-Mo., Rick Scott,R-Fla.; and John Thune, R-S.D.

Meanwhile, U.S. Rep. Carol Miller, R-W.Va., on Friday issued a statement on the Biden Administration’s final rule on electric vehicle tax credit guidelines.

“Once again, the Biden Administration is allowing the Chinese Communist Party to profit from American tax credits. These weak guidelines benefit the CCP while American manufacturers are pushed aside,” Miller said. “I introduced the End Chinese Dominance of Electric Vehicles in America Act of 2024 to tighten the Foreign Entity of Concern definition for the 30D electric vehicle tax credit and prohibit Chinese companies from accessing U.S. tax dollars. This commonsense legislation will prioritize American made products and will close key loopholes in the Treasury Department’s Electric Vehicle credit guidance to ensure American tax dollars stay in the United States. Congress should pass this bill immediately to block Biden’s disastrous rulemaking from sending these credits to our adversaries.”

U.S. Senator Joe Manchin, D-Va., also issued a statement Friday. criticizing the Biden administration EV rule.

“The Administration has made clear from day one of implementing the consumer electric vehicle tax credit in the Inflation Reduction Act that they will break the law in pursuit of their goal to flood the market with electric vehicles as quickly as possible,” Manchin said. “For example, the law sets clear thresholds for sourcing the critical minerals and components necessary for EV batteries domestically and from our free trade partners which the Treasury has cut in half until 2027.”

it after 2024, but now Treasury has provided a long-term pathway for these countries to remain in our supply chains. It’s outrageous and illegal.