Dueling Houses: EV Tax Credit Stays Put in Senate Tax Bill

Steph Willems
by Steph Willems

There’s renewed hope among electric car aficionados this morning. That’s because a tax plan unveiled by the U.S. Senate Thursday keeps the cherished (among some circles, anyway) EV tax credit alive, according to details released last night.

Should this part of the Senate’s tax reform proposal make it through to law, EV buyers could continue erasing $7,500 from the window sticker of their gas-free car.

Green car fans found their shorts instantly bunched when House Republicans proposed the elimination of the credit earlier this month, part of a broad range of tax reform measures. The outcry was immediate. Some automakers, most notably General Motors, asserted that the tax credit was needed to keep a fledgling segment alive.

Currently, electric cars make up only half of one percent of the new vehicles sold in the United States. Plug-in hybrids bring the tally to just over 1 percent.

Besides keeping the EV tax credit, which was already due to expire once individual automakers reach 200,000 EVs, the Senate bill also proposed keeping subsidies for the fossil fuel industry and a tax credit for the renewable energy sector.

On Wednesday, Democratic Michigan Senator Gary Peters wrote to Senate leaders, insisting the credit should remain in place for the good of the industry. In that letter, seen by Reuters, Peters said “a new generation of jobs and families will be supported by electric vehicles. Eliminating important economic incentives for electric vehicles would be a step in the wrong direction.”

The bill goes to a Finance Committee vote on Monday, where it could see amendments. After that, differences in the dueling House and Senate proposals will be negotiated before anything can be passed into law.

[Source: Reuters, Bloomberg]

Steph Willems
Steph Willems

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  • Heino Heino on Nov 10, 2017

    Congress: What's this? An EV charger, it trickles electricity from top to bottom. Congress: Trickle down you say? We'll keep it!

  • Superdessucke Superdessucke on Nov 10, 2017

    Maybe they can pay for the credit with a $1/gallon EV And public transit tax on gasoline nationwide? It would encourage drivers of large vehicles to downsize and would be lateral funding from taxpayers.

    • Art Vandelay Art Vandelay on Nov 11, 2017

      Sure. And maybe we should keep that bit in about not being able to write off state and local taxes. I mean why people choosing to live in a high tax area of their own free will let them out of paying their "fair share".

  • Kosmo Kosmo on Nov 11, 2017

    I can see both sides of this argument. The EV industry does have jobs to offer, and MAY be the future, but.... At some point, don't you have to push the baby birds out of the nest and see if they can fly on their own? And $7,500 is a PILE of an incentive!

  • Carlson Fan Carlson Fan on Nov 11, 2017

    Smart move to keep the incentives alive to sway people to purchase electric cars. For any multi car family that owns a home an EV as a 2nd vehicle is pretty much no brainer. Especially with cars like the Bolt now available. Electric cars will be huge in China, as they've already outlawed gas scooters. That market alone will drive the prices of EV's down in the US. Within 10 years I suspect they'll probably be more affordable than an ICE. Let's keep the market going & alive in the US and be pioneers, not followers of this new and emerging technology. As a daily driver there isn't another ICE car made I'd rather drive over my Volt. The effortless torque & silky smooth silent operation just can't be matched with any dinosaur tech ICE car. Sure I love the rumble of the exhaust from the 5.3 under the hood of my 'Hoe when I get on it but I'd still rather drive the Volt. "Quiet" is the new cool!.....LOL

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