Rep. Estes Introduces Two Bills Ending Wasteful EV Loopholes
Washington, May 18, 2021 | Roman Rodriguez (316-262-8992 )
WASHINGTON – Today Rep. Ron Estes introduced two bills aimed at saving taxpayer funds and closing electric vehicle (EV) loopholes that benefit wealthy Americans. The No Subsidies for Government Purchases of Electric Vehicles Act eliminates the ability for the seller of a qualifying EV to claim an unnecessary tax credit when the purchaser is an entity or representative of the federal or a state government. The Close the Double Subsidy Loophole for Electric Vehicles Act prevents wealthy Americans from double dipping in federal and state EV subsidies in states where EVs are already heavily incentivized.
"Within President Biden’s so-called infrastructure plan is $174 billion that would both extend the Electric Vehicle Tax Credit as well as replace government cars with electric ones," said Rep. Estes. "But hardworking Kansas families, who are dealing with rising prices on most household goods, don’t want to subsidize wealthy Americans to buy a Tesla or to pay for the federal government to purchase electric cars."
The Plug-In Electric Vehicle Tax Credit allows buyers of qualifying plug-in electric vehicles to claim a federal income tax credit of up to $7,500 (the tax credit phases out once a vehicle manufacturer has sold 200,000 qualifying vehicles). In addition to the federal benefit, 45 states (and D.C.) also provide incentives for EVs, ranging from high-occupancy vehicle (HOV) lane access, tax credits, rebates, and vehicle inspection and emissions test exemptions. Under current law, the Plug-In EV Tax Credit does not take into account the state-level subsides that are available.