Senator Barrasso’s ELITE Vehicle Act Puts Tax Credits for EVs on the Chopping Block

Senator John Barrasso has introduced legislation that aims to put a stop to federal electric vehicle and charging stations tax credit.

The Eliminating Lavish Incentives to Electric (ELITE) Vehicles Act (S. 4237) stops taxpayer money from subsidizing the purchase of luxury electric vehicles for high-income individuals and corporations.

The ELITE Vehicles Act would take away a $7,500 tax credit for new electric vehicles, eliminate the tax credit for buying used EV’s, wipe out federal investment tax credit for EV charging stations, and — in Barrasso’s words — close the “leasing loophole” that allows certain taxpayers and foreign entities to evade restrictions on EV incentives.

According to the government office of Energy Efficiency & Renewable Energy, people can get a tax credit up to $4,000 for used vehicles purchased from a dealer for $25,000 or less.

These incentives are part of President Biden’s Investing in America agenda to bolster electric vehicles. In a White House press release, the Biden administration says they hope to use the tax credits to lower the cost of EVs and EV charging infrastructure; increase consumer demand and competition; promote equity and inclusion; and accelerate the growth of the EV market.

Barrasso says, “The electric vehicle tax credit benefits the wealthiest of Americans and costs hardworking American taxpayers billions of dollars.

“Working families in Wyoming shouldn’t be footing the bill for the luxuries of Biden’s climate elitists. The federal government has no business pushing Americans into expensive electric cars they don’t want or can’t afford. 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.”

Co-sponsors of this legislation include U.S. Senators Mike Braun (R-Ind.), Shelley Moore Capito (R-W.Va.), Tom Cotton (R-Ark.), Kevin Cramer (R-N.D.), Steve Daines, (R-Mont.), Joni Ernst (R-Iowa), John Hoeven (R-N.D.), James Lankford (R-Okla.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Pete Ricketts (R-Neb.), Jim Risch (R-Idaho), Mike Rounds (R-S.D.), Marco Rubio (R-Fla.), Eric Schmitt (R-Mo.), Rick Scott (R-Fla.), and John Thune (R-S.D.).