Mayors Join Auto Industry in Fight to Maintain EV Tax Credit

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]