Senator Introduces Bill to Kill EV Tax Credits In US

While new legislation has been introduced in the U.S. House of Representatives to lift the cap and extend federal tax credits for plug-in hybrids and electric cars, a new bill aims to kill them altogether—and even tax electric cars more.

Republican Senator John A. Barrasso of Wyoming introduced a new bill this week that would end the tax credits. Additionally, the bill creates a Federal Highway user fee for alternative fuel vehicles. Electric vehicles do not pay into the gas tax in the United States, which helps pay for infrastructure improvements.

The full text for the bill isn’t available yet, but the basic description is more than enough to understand the Senator’s intentions. Republicans also came close to scrapping the up to $7,500 tax credit as part of tax cut legislation passed in the U.S. last year. Eventually, senators left the tax credit in the revised tax code, but a standalone amendment to the Internal Revenue Code may have a better shot at gaining traction in the Senate.

Meanwhile, the bill to lift the 200,000-vehicle cap on the federal tax credits remains in the House’s Ways and Means committee. However, the legislation has garnered 17 co-sponsors through the end of September, and unsurprisingly, all 17 are Democrats. Both the bill to kill electric car tax credits and extend are still likely quite some time from ever reaching a vote.

Automakers have lobbied to protect the tax credits as they’re a driving force to help sell electric cars. Tesla has already reached the 200,000-vehicle cap, while General Motors is likely to reach it sometime next year. Othe automakers who have only now begun selling electric cars still have time before their own credits expire. That is, unless they’re stripped away entirely.

a version of this post first appeared on hybridcars.com

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