U.S. Sen. John Thune (R-SD) on Sept. 22 sponsored a bill that would prevent double dipping between tax credits and grants or loans for clean vehicle manufacturers.
“American automakers have been on the receiving end of historic amounts of taxpayer money, yet we see them raising vehicle prices right when they’re preparing to receive even more government support,” Sen. Thune said. “My common-sense bill would make automakers choose between grants and loans that subsidize their manufacturing operations or having the vehicles they make remain eligible for the expanded electric vehicle tax credit. Automakers shouldn’t be able to double-dip at taxpayers’ expense.”
Specifically, the Ending Duplicative Subsidies for Electric Vehicles Act, S. 4939, which is cosponsored by three lawmakers, including U.S. Sens. Bill Cassidy (R-LA) and Steve Daines (R-MT), would require stakeholders to choose between receiving manufacturing loans or grants to lower the cost of electric vehicle (EV) production or having the vehicles they manufacture remain eligible for the new EV credits under the Inflation Reduction Act (IRA), according to a bill summary provided by Sen. Thune’s staff.
The IRA extends the consumer tax credit of up to $7,500 for new EVs and it provides $40 billion in loan authority for the U.S. Department of Energy Loan Programs Office, which can make loan guarantees for the manufacture of fuel-efficient vehicles or parts of those vehicles, including EVs and advanced diesel vehicles, according to the summary. The IRA also directly subsidizes auto manufacturing through grants and loans.
The bill has been referred to the U.S. Senate Finance Committee for consideration.