U.S. Lawmakers Propose To Extend EV Tax Credit At A Cost Of $11.4 Billion

A number of U.S. lawmakers have introduced legislation proposing to expand the nation’s federal electric vehicle tax credit for an additional 400,000 EVs sold by car manufacturers.

Under current regulations, buyers can benefit from a $7,500 federal tax credit for the first 200,000 EVs a car manufacturer sells in the U.S.. Once that figure is reached, the tax credit is phased out over a period of 15 months.

The new bill, dubbed the ‘Driving America Forward Act’ and sponsored by the likes of Democratic Senators Debbie Stabenow and Gary Peters, would grant car manufacturers a $7,000 tax credit for an additional 400,000 vehicles built on top of the 200,000 already eligible for a $7,500 credit. The new bill also proposes to shorten the phase-out schedule to nine months and is also been sponsored by Republic Senators Lamar Alexander and Susan Collins as well as Democratic Representative Dan Kildee.

The proposal clashes with White House plans

In addition, the bill would extend the hydrogen fuel cell credit through to 2028 and is estimated to cost $11.4 billion. All but $91 million of this figure would be used to extend the EV tax credit.

Reuters reports that the bill has the backing of a number of car manufacturers and environmental groups. However, many lawmakers are expected to oppose the bill, particularly since the White House last month proposed to immediately scrap the $7500 federal tax credit in a move that would reportedly save the government $2.5 billion over a decade.

Companies including GM, Tesla, Toyota, Ford, FCA, Honda, BMW, Nissan, and Volkswagen AG have all backed the bill.

Tesla was the first company in the United States to have its federal tax credit cut from $7,500 to $3,750 on January 1. GM’s tax credit was also halved on April 1.

  • LJ

    Won’t we need that $11.5 billion to go towards Bernie’s $25 trillion Medicare for all plan?

    • ME

      Or a chemical that stops cow farts from destroying the atmosphere.
      It would be more beneficial for humanity to permanently send AOC, Illhate Omar and Rashid T. to outer space and give the planet a rest. lol.

      • Six_Tymes

        lmao! best comment post in months.

    • Six_Tymes

      lol

    • Stephen G

      I’d rather put it towards a Medicare plan than in the pockets of wealthy insurance and pharmaceutical companies.

      • LJ

        Because the government has done such a marvelous job with the VA.

        • Stephen G

          Just as good as the healthcare you get through insurance companies without the price gouging.

          • LJ

            Your level of ignorance is astounding.

          • Stephen G

            Learning it by living it is not ignorance…it’s knowledge.

          • LJ

            Ok bud. Every single news story over the past decade has been a lie.

  • Gary Ackerman

    EV credits should not be given back to the companies that already used them. We let GM off the hook on the bailout loan, why would we give them more Tax money than their competition now?

    • diesel_vdub

      These are not tax breaks for the companies, they are for the consumer that purchases the vehicle.

      • Gary Ackerman

        I understand that but it lowers the price of the car. Both Tesla and GM have used their allotments up. The other manufacturers coming to market should have the same number of credits to use so it is an equal field. The reason Tesla and GM are lobbying for an extension is because they are afraid they cant compete.

      • Gary Ackerman

        Guess you dont get how the allocation of the credits work. Yes it goes to the customer but each manufacturer gets the same limit on how many they get and that is as it should be.

  • Mr. EP9

    Oh yeah, good luck getting that through Congress. This is going to be dead in the water just like the Green New Deal.

  • eb110americana

    I would rather that they invest this in a high-speed national EV charging infrastructure. The argument for it says that if we want to get/stay ahead in the EV market, which is undoubtedly the direction that the auto market is going, we need to support it just like China and Japan, as well as perks like no congestion charges in parts of Europe. If the thriving EV market in China were to get too far ahead, chances are that would eventually spell the end of the US automotive industry.

    In truth, one of the largest obstacles is the existing gasoline infrastructure. There’s a gas station every few blocks, but it took us over 100 years to build that out, so we are invested in it. If we had charging at every gas station (or even half of them), adoption would make a lot more sense for most people. Having them at work, and in your garage at home can replace periodic fill-ups entirely. We are seeing huge leaps in 800W charging capabilities, its just a matter of getting access to the public. That seems like a better investment to me than giving the same $7,500 to a $100K+ Model-S buyer as the buyer of a Leaf.

  • I WOULD GO WITH AN ADDITIONAL 100K CARS AND SEE HOW IT GOES.

  • Paul Webster

    Corporate welfare lives!

  • SteersUright

    Go for it! Get gas cars off the road.

  • Stephen G

    Cut it watch the price of “electrics” drop like a rock. No need to be giving millions of dollars to already highly profitable car companies. Who by the way squander their money with stratospheric salaries and bonuses and then have the balls to ask for bailout money.

  • LJ

    Off the rails we go…

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