Legislation to End the $7,500 Federal EV Tax Credit Introduced

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U.S. Senator John Barrasso, chairman of the Senate Committee on Environment and Public Works, introduced The Fairness for Every Driver Act, S.3559 which seeks to repeal the federal electric vehicle tax credit which currently offers up to $7,500 on new EV purchases. Senator Barrasso, who represents Wyoming, said, “The electric vehicle tax credit largely benefits the wealthiest Americans and costs taxpayers billions of dollars.”

“This legislation will save billions in taxpayer funds by ending the federal electric vehicle tax credits and strengthen the Highway Trust Fund by ensuring that alternative fuel vehicle drivers pay into it,” said Barrasso. “My legislation levels the playing field for all drivers across America. Gas, electric, and alternative fuel vehicles use the same roads. All should contribute to maintain them.”

The Fairness for Every Driver Act will require a federal highway user fee on alternative fuel vehicles that will be applied to the Highway Trust Fund.

Specifically, the legislation would:

  • Terminate and repeal the federal electric vehicle tax credit up to $7,500 per new electric vehicle purchased for use in the U.S.;
  • Impose a federal highway user fee on alternative fuel vehicles;
  • Require that all user fees be collected with the user’s tax return; and
  • Ensure the transfer of federal highway user fees into the Highway Trust Fund.

A House bill, H.R.6274, sponsored by Rep. Peter Welch of Vermont seeks to extend the EV tax credit for ten years and make the credit available to an unlimited number of EV buyers.

Read the text of Sen. Barrasso’s legislation here.

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