WASHINGTON – Under Section 30D of the Internal Revenue Code, eligible taxpayers may qualify for a tax credit of up to $7,500 following the purchase of a new, qualified plug-in electric vehicle (EV) or a fuel cell electric vehicle (FCV) purchased between 2023 to 2032. According to the Tax Foundation, these aggressive tax credits, established under the Inflation Reduction Act, are anticipated to cost roughly $180 billion over the next decade.
The Biden administration has utilized this tax credit to push its EV agenda, encouraging the shift away from liquid fuels towards electric technology and resources controlled by our adversaries. China produces 75% of lithium-ion batteries and 70% of new battery production announced through 2030. Over half of EV production resides in China with only 10% in the U.S. Even with generous federal incentives, U.S. manufacturers like Ford reported it lost close to $130,000 per electric vehicle in the first quarter of 2024.
Today, U.S. Senator Kevin Cramer (R-ND) joined U.S. Senator John Barrasso (R-WY) in cosponsoring his Eliminate Lavish Incentives to Electric (ELITE) Vehicles Act. This legislation would repeal the tax credits for purchases of new, used, and commercial EVs. Additionally, it eliminates the federal investment tax credit for electric charging stations and closes the “leasing loophole” which allows wealthy buyers and foreign entities to bypass income caps and domestic manufacturing restrictions on EV incentives.
“It’s time we say the quiet part out loud: the market doesn’t want and isn’t buying EVs, these tax credits largely benefit the wealthy by facilitating the sale of expensive EVs, and we’re funneling taxpayer money to a supply chain controlled by China,” said Cramer. “This is a waste of taxpayer money, especially when we’re nearly $35 trillion dollars in debt. Let’s end this electric vehicle agenda nonsense and finally get rid of President Biden’s EV and charging station tax credit scheme once and for all.”
“The electric vehicle tax credit benefits the wealthiest of Americans and costs hardworking American taxpayers billions of dollars,” said Senator Barrasso. “Working families in Wyoming shouldn’t be footing the bill for the luxuries of Biden’s climate elitists. The federal government has no business pushing Americans into expensive electric cars they don’t want or can’t afford. Repealing these tax credits keeps China out of our markets and lets Americans, not Washington, use their hard-earned money to purchase the vehicles that are best for them.”
Groups supporting the ELITE Vehicles Act include Americans for Prosperity and the National Taxpayers Union. In addition to Senators Cramer and Barrasso, members supporting this legislation include U.S. Senators Mike Braun (R-IN), Shelley Moore Capito (R-WV), Tom Cotton (R-AR), Steve Daines, (R-MT), Joni Ernst (R-IA), John Hoeven (R-ND), James Lankford (R-OK), Mike Lee (R-UT), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Pete Ricketts (R-NE), Jim Risch (R-ID), Mike Rounds (R-SD), Marco Rubio (R-FL), Eric Schmitt (R-MO), Rick Scott (R-FL), and John Thune (R-SD).
Click here for bill text.
