Senate Republicans Challenge Electric Vehicle Tax Credits

Senate Republicans unveiled a revised proposal on Friday to eliminate the $7,500 tax credit for new electric vehicle sales and leases from September 30. The proposed budget bill also aims to end the $4,000 tax incentive for used EV purchases.

Previously, the plan would have phased out the tax credit for both new and used electric vehicle sales within 180 days post-enactment and ended the credit for leases of non-North American assembled vehicles immediately. This latest legislation represents a shift in policy direction, veering away from former President Joe Biden's pro-EV and renewable energy stances.

The Republican focus on reducing EV tax incentives marks a pivot from recent efforts to encourage the use of electric vehicles as a strategy against climate change and in pursuit of reduced emissions.

(With inputs from agencies.)