Rosen Bill to Extend Electric Vehicle Tax Credit Gains Momentum in Senate

Statement

Today, Congresswoman Jacky Rosen (NV-03), a member of the House Science, Space and Technology Committee (SST), applauded Senators Jeff Merkley (D-OR), Catherine Cortez Masto (D-NV), and Martin Heinrich (D-NM) for introducing the Senate companion of the Electric Cars Act of 2018, which was introduced by Rosen and Congressman Peter Welch (D-VT) in the U.S. House of Representatives this June. The Electric Cars Act would extend the federal electric vehicle tax credit for 10 years.

"I'm proud to see my Senate colleague Jeff Merkley introduce companion legislation to our bill with Congressman Welch to continue the electric vehicle tax credit for the next 10 years," said Congresswoman Rosen (D-NV). "This forward-thinking legislation will extend an important federal tax credit incentivizing Nevada consumers to transition to electric vehicles and provide more certainty as our state moves to a cleaner, more energy efficient economy. I'll continue taking action in Congress to support policies that allow Nevada to reduce carbon emissions and become a clean energy leader."

"It's crazy that we might allow the electric vehicle tax credit to run out just as the American EV market is starting to gain a foothold," said Senator Merkley (D-OR). "Every day, we see the effects of climate chaos all around us--record-setting droughts, out-of-control wildfires, destructive mega-storms, and spreading insects and ocean acidification. Market-based incentives that help EVs compete with gas-powered cars are not only good for our economy, they're essential to our future."

"Transportation is the single largest contributor to greenhouse emissions in the United States," said Congressman Welch (D-VT). "It is urgent that we transition to cleaner, more efficient modes of transportation. Our legislation will make electric vehicles and their charging stations more affordable, while saving Vermonters money at the gas pump and reducing their environmental footprint."

BACKGROUND: Currently, a federal tax credit of up to $7,500 is available for buyers of electric vehicles. However, the number of credits is capped at 200,000 vehicles for each manufacturer. That cap is expected to be hit by manufacturers as early as this year, rendering the credit unavailable to buyers.

H.R. 6274 would make three important changes to the credit:

First, it eliminates the per manufacturer cap, allowing an unlimited number of consumers access to the tax credit for the next ten years, regardless of the manufacturer from which they purchase their car.
Second, it lets consumers who buy electric cars reap the financial benefits of the tax credit immediately at the point of sale, rather than having to wait until they file their annual income tax return as is the case under current law.
Finally, the legislation extends for ten years a tax credit to purchasers of electric vehicle charging stations to incentivize the buildout of this important infrastructure around the country.

Source