Mayors Join Auto Industry in Fight to Maintain EV Tax Credit

Matt Posky
by Matt Posky

On Wednesday, 22 mayors issued a letter to members of the House and Senate conference committee that’s attempting to finalize a rushed tax plan before the end of the year, saying the $7,500 electric vehicle tax credit allows them to better pursue clean-energy initiatives within their cities. The current versions of the bill has the House eliminating the credit, while the Senate has voted to keep it. So far, no automaker has reached the credit’s 200,000-vehicle threshold, and the industry — now backed with mayoral might — has pressed the U.S. government to maintain the incentive.

Alright, so it isn’t the power play that will turn the tide. But it does show that there exists a large group outside of manufacturers and EV fans that wants to keep the credits in place.

The primary issue is that electric vehicles, on average, are still more expensive than traditional internal combustion automobiles. Supporters of the credit believe that, by offering the incentive to shoppers, the initial cost is sufficiently offset to a point that makes purchasing an EV possible for a majority of Americans.

In the letter, the gaggle of mayors claim electric vehicles have created over 200,000 automotive jobs in the U.S. while also providing a thrifty and cleaner alternative to gas-burning cars.

“The lifetime cost of ownership of an electric vehicle is significantly lower than that of a traditional internal combustion engine vehicle,” reads the letter. “According to www.fueleconomy.gov, an online resource provided by the U.S. Department of Energy’s Office of Transportation & Air Quality, an owner of a Nissan Leaf electric vehicle saves approximately $4,000 in fuel costs over five years while spending approximately $600 per year for vehicle charging costs. Owning an electric vehicle provides working American families with financial savings that they can put towards other needs.”

While the majority of the 22 mayors represent large and midsize cities occupying the American coastline, a handful hail from more central locations like Louisville, KY, Aspen, CO, and Columbus, OH. However, even if every mayor resided in the EV crazy state of California, they would still find their opinions shared by groups beyond its borders.

Automotive News reported that a similar memo was sent to Senator Orrin Hatch (R-Utah) and House Representative Kevin Brady (R-Texas) from the Electric Drive Transportation Association. The group represents automakers, suppliers, energy companies, and technology firms interested in advancing electrification.

It states that “congress designed the credit this way to promote multiple manufacturers’ investment and to allow the plug-in electric drive vehicle manufacturers to achieve commercial-scale production and the attendant reductions in per unit costs, while maximizing consumer options.”

[Image: Nissan]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Stingray65 Stingray65 on Dec 09, 2017

    99% of the EV tax credits go to the top 5% income earners, so basically it is about helping rich people virtue signal by subsidizing their new EV. As this lobbying illustrates, once a subsidy is in place it is almost impossible to get rid of. Don't be surprised if these mayors, tree-huggers, and Elon start lobbying to get them extended to the first 500,000 units, etc. EVs purchases are almost entirely additions to the fleet size since they are usually purchased as 2nd or 3rd commuting cars, which when combined with fossil generated electricity means they have minimal at best positive impact on greenhouse gas emissions and other pollutants. Yes other industries also get subsidies, which in an ideal world would also be eliminated, but most of these other industries are also net taxpayers because they actually earn profits. EVs are money losers, Tesla pays no taxes. EV owners do not contribute to paying for roads and bridges because they don't pay fuel taxes.

    • Kosmo Kosmo on Dec 09, 2017

      Great points. A long time ago, somebody really famous said "There is nothing so permanent as a temporary government program". Still seems to hold.

  • Tonyd Tonyd on Dec 09, 2017

    How about making technology agnostic. Change the definition of gas guzzler to 30 mpg combined. 100 X (30 - combined mpg) per year road use tax. civic 30-35 zero fusion 1.5t 30-27 300 fusion hybrd 30-42 zero escape 1.5t 30-26 400 f150 2wd 2.7 30-21 900 So ford adds 48v - electric ac - stop-start to fusion and escape and gg tax goes to zero. cut fuel demand to what we produce here and tell all ME to go F themselves.

    • Civicjohn Civicjohn on Dec 10, 2017

      My lowly 2016 Civic EX continues to get approx. 38-39 MPG every tank full with a mix of local and interstate driving.

  • 3SpeedAutomatic 2012 Ford Escape V6 FWD at 147k miles:Just went thru a heavy maintenance cycle: full brake job with rotors and drums, replace top & bottom radiator hoses, radiator flush, transmission flush, replace valve cover gaskets (still leaks oil, but not as bad as before), & fan belt. Also, #4 fuel injector locked up. About $4.5k spread over 19 months. Sole means of transportation, so don't mind spending the money for reliability. Was going to replace prior to the above maintenance cycle, but COVID screwed up the market ( $4k markup over sticker including $400 for nitrogen in the tires), so bit the bullet. Now serious about replacing, but waiting for used and/or new car prices to fall a bit more. Have my eye on a particular SUV. Last I checked, had a $2.5k discount with great interest rate (better than my CU) for financing. Will keep on driving Escape as long as A/C works. 🚗🚗🚗
  • Rna65689660 For such a flat surface, why not get smoke tint, Rtint or Rvynil. Starts at $8. I used to use a company called Lamin-x, but I think they are gone. Has held up great.
  • Cprescott A cheaper golf cart will not make me more inclined to screw up my life. I can go 500 plus miles on a tank of gas with my 2016 ICE car that is paid off. I get two weeks out of a tank that takes from start to finish less than 10 minutes to refill. At no point with golf cart technology as we know it can they match what my ICE vehicle can do. Hell no. Absolutely never.
  • Cprescott People do silly things to their cars.
  • Jeff This is a step in the right direction with the Murano gaining a 9 speed automatic. Nissan could go a little further and offer a compact pickup and offer hybrids. VoGhost--Nissan has  laid out a new plan to electrify 16 of the 30 vehicles it produces by 2026, with the rest using internal combustion instead. For those of us in North America, the company says it plans to release seven new vehicles in the US and Canada, although it’s not clear how many of those will be some type of EV.Nissan says the US is getting “e-POWER and plug-in hybrid models” — each of those uses a mix of electricity and fuel for power. At the moment, the only all-electric EVs Nissan is producing are the  Ariya SUV and the  perhaps endangered (or  maybe not) Leaf.In 2021, Nissan said it would  make 23 electrified vehicles by 2030, and that 15 of those would be fully electric, rather than some form of hybrid vehicle. It’s hard to say if any of this is a step forward from that plan, because yes, 16 is bigger than 15, but Nissan doesn’t explicitly say how many of those 16 are all-battery, or indeed if any of them are.  https://www.theverge.com/2024/3/25/24111963/nissan-ev-plan-2026-solid-state-batteries
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