Senate Passes Tax Bill, But Will EV Incentive Survive?

The fate of a federal electric vehicle (EV) tax credit remains uncertain after the U.S. Senate approved sweeping tax reform legislation early Saturday morning.

The Senate GOP bill, which passed 51-49 along party lines, would maintain the Section 30D Plug-in Electric Drive Vehicle Credit; however, the House of Representatives’ previously approved tax overhaul included a provision to repeal the EV incentive, which provides a credit of up to $7,500 per vehicle, depending on battery capacity, and is already scheduled to phase out on a per-manufacturer basis under current law.

Now that both chambers of Congress have passed their tax reform bills, conferees will be tasked with reconciling a wide array of differences between the two versions and a final bill will have to be voted on again. GOP leaders are aiming to send the legislation to President Donald Trump before Christmas, and as of press time, it is unclear whether the EV tax credit will survive.

In a statement, Genevieve Cullen, president of the Electric Drive Transportation Association (EDTA), says the trade organization “appreciates that the Senate’s tax reform bill will maintain the existing consumer tax credit for electric vehicles.”

“The U.S. electric drive sector is still emerging, and policies that promote job growth and innovation remain critical,” states Cullen. “The plug-in electric credit is good for consumers and reinforces investment in charging infrastructure and manufacturing. We urge Congress to keep the Senate stance in the final tax legislation and accelerate U.S. leadership in electric drive.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here