Senate Republicans Push Back on Electric Vehicle Incentives
Senate Republicans have unveiled a revised tax and budget bill aimed at ending electric vehicle tax credits. The bill proposes to eliminate the $7,500 tax credit for new EVs and the $4,000 credit for used EVs by September 30, countering policies from the Biden administration that support electric and renewable energy initiatives.
In a significant policy shift, Senate Republicans have introduced a revised tax and budget bill that proposes the termination of tax credits that support electric vehicles. The proposed legislation seeks to end the $7,500 tax credit on new electric vehicle sales and leases and the $4,000 tax credit for used EVs by September 30. This move contrasts starkly with former President Joe Biden's policies promoting EV adoption to combat climate change.
The House of Representatives' version of the legislation had suggested extending the tax credits until 2025 and 2026, respectively, for new and automaker-specific EV sales. However, with the Republican-led bill, there is a notable shift towards easing regulations for traditional gas-powered vehicles. It includes provisions that would make it simpler for automakers to produce these vehicles by eliminating fines associated with Corporate Average Fuel Economy rules.
Additional measures in the bill include tax exemptions for interest on auto loans for domestically manufactured cars until 2028, though this benefit is phased out for individuals with incomes exceeding $100,000 annually. A proposed move to force the U.S. Postal Service to scrap thousands of electric vehicles was withdrawn, following a ruling by the Senate parliamentarian. The response underscores the broad resistance from Senate Republicans against current and future EV adoption mandates.
(With inputs from agencies.)
Google News