Capito, Colleagues Introduce Bill to Stop Lavish Electric Vehicle Tax Credits

CHARLESTON, W.Va. - Yesterday, U.S. Senator Shelley Moore Capito (R-W.Va.) and a group of her Senate Republican colleagues introduced legislation to end the federal electric vehicle and charging stations tax credit. The Eliminating Lavish Incentives to Electric (ELITE) Vehicles Act - led by U.S. Senator John Barrasso (R-Wyo.) - stops taxpayer money from subsidizing the purchase of luxury electric vehicles for high-income individuals and corporations.

"There is no reason that U.S. taxpayers should be bankrolling luxury electric vehicle purchases for wealthy individuals or foreign entities. This commonsense legislation dismantles loopholes that are artificially supporting the electric vehicle industry and sidestepping tax credit guidelines at the expense of American citizens. I'm proud to join my colleagues and introduce this legislation to remove the Biden administration's misguided influence on the expensive electric vehicle industry," Senator Capito said.

BACKGROUND:

This bill specifically repeals the $7,500 tax credit for new electric vehicles (EVs), eliminates the tax credit for purchasing used EVs, wipes out the federal investment tax credit for electric vehicle charging stations, and closes the "leasing loophole" that has allowed certain taxpayers and foreign entities to evade restrictions on EV incentives. This legislation would also prevent China from exploiting loopholes and circumventing guardrails to access U.S. tax credits associated with electric vehicles.

In addition to Senators Capito and Barrasso, the legislation is co-sponsored by: U.S. Senators Mike Braun (R-Ind.), Tom Cotton (R-Ark.), Kevin Cramer (R-N.D.), Steve Daines, (R-Mont.), Joni Ernst (R-Iowa), John Hoeven (R-N.D.), James Lankford (R-Okla.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Pete Ricketts (R-Neb.), Jim Risch (R-Idaho), Mike Rounds (R-S.D.), Marco Rubio (R-Fla.), Eric Schmitt (R-Mo.), Rick Scott (R-Fla.), and John Thune (R-S.D.).

Full text of the bill can be found here.

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