Hoeven, 18 GOP colleagues unveil bill to kill federal EV tax credits

U.S. Sen. John Hoeven (R-ND) on May 2 signed on as one of more than a dozen Republicans who proposed legislation aimed at ending the federal electric vehicle (EV) and charging stations tax credit.

“At the same time that the Biden administration is imposing policies to eliminate choice in the new consumer car market, they have advanced incentives that benefit those who don’t need assistance at the cost of U.S. taxpayers,” Sen. Hoeven said. “Instead of heavy-handed policies that tax, spend and overregulate, we will continue working to advance common-sense measures that help keep costs low and maintain choice for consumers.”

The Eliminating Lavish Incentives to Electric (ELITE) Vehicles Act, S. 4237, which is sponsored by U.S. Sen. John Barrasso (R-WY), would stop taxpayer money from subsidizing the purchase of luxury EVs for high-income individuals and corporations.

Specifically, S. 4237 would repeal the $7,500 tax credit for new EVs; the tax credit for purchasing used EVs; and the federal investment tax credit for EV charging stations, according to a bill summary provided by the lawmakers. Additionally, the bill would close the “leasing loophole” that the senators say has allowed certain taxpayers and foreign entities to evade restrictions on EV incentives, the summary says, and would prevent China from exploiting such loopholes to access U.S. tax credits associated with EVs.

“The federal government has no business pushing Americans into expensive electric cars they don’t want or can’t afford,” said Sen. Barrasso. “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.”

Among the other 17 original cosponsors who joined Sen. Hoeven in signing on to S. 4237 are U.S. Sens. Shelley Moore Capito (R-WV), Steve Daines (R-MT), Joni Ernst (R-IA), Mike Rounds (R-SD), and John Thune (R-SD).

The measure has been referred for consideration to the U.S. Senate Finance Committee.