By on November 10, 2017

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]

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22 Comments on “Dueling Houses: EV Tax Credit Stays Put in Senate Tax Bill...”


  • avatar
    NMGOM

    TTAC: “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.”

    No! No! No!

    We just have too many Democrats in the Senate. And some of them are Republicans! (^_^).

    ======================

    • 0 avatar
      highdesertcat

      Way too much ado over….nothing. Congress won’t be able to pass anything, not even a mild tax cut.

      Infighting among Republicans, obstructionism from the ‘crats…. Hey, the more things change, the more they stay the same.

      Don’t worry. Be Happy!

      The Republicans failed to repeal and replace, as accurately predicted by John Boehner; and tax cuts and tax reform are a wet dream. Ain’t ever gonna happen. Squashes too many financial interests and loopholes for the financially astute.

      Ain’t ever gonna happen, as predicted by many financial analysts and political pundits.

      But what will likely happen is a brief and violent Korean War v2. Long overdue!

      After that, happy days are here again. The New World Order will have begun.

      • 0 avatar
        FreedMike

        Oh, they’ll agree on *corporate* tax cuts. That debate’s done before it starts.

        They’re just trying to figure out how to screw the rest of us to pay for it.

        Worth noting: the House version would eliminate the ability to write off alimony. I guess the divorced-guy vote isn’t important to them…

        • 0 avatar
          highdesertcat

          I’d be surprised if “they” will be able to get anything done, even corporate tax cuts.

          We can’t even define who “they” are because there is no “they”. It’s all individualists in both the House and the Senate.

          So far, what has emerged from Congress and signed by President Trump has been a lot, but really meaningless, and none of it long lasting.

          It would be great if “Congress” could pass something of importance and substance, ANYTHING of importance and substance, that would positively affect the citizens of the US. A year later? Nothing!

          I’m not as optimistic as you are. Politicians are great talkers but rarely are they do-ers.

          As we all know, talk is cheap.

          • 0 avatar
            FreedMike

            I’m not “optimistic” about corporate tax cuts at all – they’ll clearly be done on our backs, so there’s little “optimism” I can bring to that party.

            I’m just thinking they’re likely.

            If we want our government to start acting like a government, we need the money OUT of politics, and we need it now.

          • 0 avatar
            highdesertcat

            Yeah, I agree with you, but “money OUT of politics” is unlikely to ever happen because that is an oxymoron since it takes money for politics to happen.

            I have only heard of one 90+ year old candidate who got elected mayor recently by knocking on the door of every voter in his town and asking for their vote. All he spent was his own money.

            My disdain for politics is what drove me to forsake ALL political parties and register to vote as “not affiliated with any political party.”

            I started life in a two-union democrat household. Became a Republican when I joined the military.

            Was so disappointed by both political parties that I became an Independent when I retired from the military in 1985.

            All politics is local, and like most Independents I vote for the person I believe to be the best qualified for the job; even though it often means that the political process produces an undesired outcome.

        • 0 avatar
          stingray65

          Corporations don’t pay taxes, people do. High corporate taxes mean employees, investors, or consumers pay higher prices or receive lower payments/returns to pay for those taxes. The correct corporate tax rate should be zero, and then adjust personal investment and employment income to offset the revenue losses.

          If you want money out of politics, you need to get politics out of business. The effectiveness of corporate and high income individual bribes (aka campaign contributions) to congress for special tax breaks, protection from competition, or subsidies is why there is so much money in politics, and why politicians never want to fix the broken tax or regulatory systems. Nobody pays them to get the same deal as everyone else.

      • 0 avatar
        NMGOM

        highdesertcat – – –

        Gee, I wish you weren’t right, but…(^_^)…

        ===========

        • 0 avatar
          highdesertcat

          NMGOM, changing times. Something we each have to deal with, no matter our political inclinations.

          As I progressed through my life from the working class to the self-employed class and ultimately to the leisure class, I have found that we each have to adapt to the political changes in the US to make it all work (for each of us in our own way.)

          I didn’t vote for Trump. Didn’t think he had a snowball’s chance in Hell. Media told me so.

          But I’m awfully glad he got elected and is shaking up the political status quo and undoing the moronic proclivities of Lefty Libbies enacted during the last administration.

          I doubt Trump will get anything done of real significance, but at least for the next three years America will deviate from the path of the last eight years. Look at the changes of the last 12 months!

          As long as American citizens are Happy, Trump can screw up and make mistakes and come voting time, they’ll vote for him again.

          And a lot more American citizens are happier today than at any time during the past eight years.

          That’s great. If people have money in their pockets, they’ll spend. If people are optimistic, they’ll invest in their future.

          And that’s good for America.

  • avatar
    SCE to AUX

    That cord going into the i3 looks like a serious tripping hazard, possibly resulting in a broken connector port on the car, plus a lawsuit.

    • 0 avatar
      la834

      Cables on recharging pumps situated like that one really should be brightly colored and maybe striped so they’re easy to see.

      • 0 avatar
        PrincipalDan

        I was in Little Rock last weekend for a conference, was staying at an Embassy Suites. Their were two electric chargers on the property one TESLA and one more general. It was a busy weekend for the hotel and not once did I see an electric vehicle connected.

        At one point it was a lifted F150 and a Saturn Relay parked at the chargers. Kind of made me chuckle.

    • 0 avatar
      mcs

      I went back and looked at a photo of my car charging curbside in Boston. There was a bollard between the charger and the curb that would have stopped anyone from tripping over the cord. Besides, in big cities you kind of have to watch where you are going anyway since there are far worse things like homeless people to trip over. Oh, and the line is on a retractor that would absorb any shock.

    • 0 avatar
      TMA1

      That pump isn’t covered in graffiti yet, so I know this photo has nothing to do with reality. When DC put in solar-powered trash cans (I don’t get it, don’t ask), they were covered within a day.

      Also, this photo is a great argument against EV subsidies. That woman can afford her BMW with or without a tax credit. She doesn’t need subsidization.

      • 0 avatar
        mcs

        @tma1: That woman can afford her BMW with or without a tax credit.

        Actually, she’s not the owner. She just spotted a laptop left by the owner in the back seat and is using her phone to hack the locks so she can open the door and steal it.

  • avatar
    Heino

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

  • avatar
    Superdessucke

    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.

    • 0 avatar
      Art Vandelay

      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”.

  • avatar
    kosmo

    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!

  • avatar
    Carlson Fan

    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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