On Thursday, the U.S. House of Representatives approved a major tax overhaul, which includes a provision to repeal a federal electric vehicle (EV) incentive.
The bill, H.R.1, passed in a 227-205 vote, with all Democrats opposing the legislation. As previously reported, the bill covers a vast range of tax policies impacting myriad industries and issues. However, one provision would eliminate the Section 30D Plug-in Electric Drive Vehicle Credit of up to $7,500 per vehicle. The Senate Finance Committee advanced its own tax reform legislation, which does not include a repeal of the EV incentive, on late Thursday.
Genevieve Cullen, president of the Electric Drive Transportation Association (EDTA), says, “EDTA is disappointed that H.R.1, the tax reform legislation passed by the House today, includes repeal of the credit for plug-in vehicle purchases, and we call on the Senate to continue to support this investment in innovation.
“With intense competition from China and other nations, it is critical that this vital incentive be retained to accelerate U.S. job growth and economic competitiveness in electric drive technologies,” Cullen continues. “The global race for electric vehicles is at a key turn; this is not the time for the U.S. to surrender its lead.”
If and when the U.S. Senate passes its own tax reform plan, the two chambers of Congress would be tasked with reconciling their differences before sending any final legislation to President Donald Trump for consideration.
