From staff reports WASHINGTON – U.S. Sen. James Lankford (R-Okla.) is among those who support legislation filed recently to abolish tax credits for electric vehicles.
The measure filed by Sen. John Barrasso (R-Wyo.), the Senate Majority Whip, would prevent taxpayer funds from subsidizing luxury electric vehicles for high-income individuals and corporations.
The Eliminating Lavish Incentives to Electric (ELITE) Vehicles Act specifically would repeal the $7,500 tax credit for new electric vehicles, eliminate the tax credit for purchasing used EVs, wipe out the federal investment tax credit for electric vehicle charging stations, and close the “leasing loophole” that has allowed certain taxpayers and foreign entities to evade restrictions on EV incentives.
It also would prevent China from exploiting loopholes and circumventing guardrails to access U.S. tax credits associated with electric vehicles.
“The hard-earned money of taxpaying Americans should not cover the cost for the luxuries of the nation’s elite. Nor should we be allowing China to infiltrate our markets and undermine our supply chain,” Barrasso said. “Repealing these reckless tax credits from the Biden administration will stop Washington from giving handouts to our adversaries and high-income individuals. Wyoming families should not foot the bill for expensive electric cars they don’t want and can’t afford.”
Several senators besides Lankford, including Senate Majority Leader John Thune (R-S.D.), signed on as co-sponsors of the measure.
The legislation is supported by American Fuel & Petrochemical Manufacturers, Americans for Prosperity, National Taxpayers Union, and Heritage Action.
“The EV tax credit was always supposed to sunset, so Sen. Barrasso is absolutely right to say ‘enough is enough’ for taxpayers,” said ChetThompson, president and CEO of American Fuel & Petrochemical Manufacturers. “After more than a decade of subsidies worth billions of dollars, it’s time for EVs to compete on a level playing field.”
Brent Gardner, chief government affairs officer with Americans for Prosperity, was in agreement. “The last thing American families and small businesses should be subsidizing is electric vehicles that few can afford.”