Hoeven, Barrasso Introduce Legislation to Rescind Costly EV Tax Credit

WASHINGTON – Senator John Hoeven (R-N.D.) today joined U.S. Senator John Barrasso (R-Wyo.) in introducing legislation to end the federal electric vehicle (EV) and charging stations tax credit. The Eliminating Lavish Incentives to Electric (ELITE) Vehicles Act (S. 4237) stops taxpayer money from subsidizing the purchase of luxury electric vehicles for high-income individuals and corporations. This bill specifically repeals the:

  • $7,500 tax credit for new EVs.
  • Tax credit for purchasing used EVs.
  • Federal investment tax credit for electric vehicle charging stations.
  • “Leasing loophole” that has allowed certain taxpayers and foreign entities to evade restrictions on EV incentives.

The legislation would also prevent China from exploiting loopholes and circumventing guardrails to access U.S. tax credits associated with electric vehicles.

“At the same time that the Biden administration is imposing policies to eliminate choice in the new consumer car market, they have advanced incentives that benefit those who don’t need assistance at the cost of U.S. taxpayers,” said Senator Hoeven. “Instead of heavy-handed policies that tax, spend and overregulate, we will continue working to advance common sense measures that help keep costs low and maintain choice for consumers.”

“The electric vehicle tax credit benefits the wealthiest of Americans and costs hardworking American taxpayers billions of dollars,” said Senator Barrasso. “Working families in Wyoming shouldn’t be footing the bill for the luxuries of Biden’s climate elitists. The federal government has no business pushing Americans into expensive electric cars they don’t want or can’t afford. Repealing these tax credits keeps China out of our markets and lets Americans, not Washington, use their hard-earned money to purchase the vehicles that are best for them.”

Cosponsors of the ELITE Vehicles Act include U.S. Senators Mike Braun (R-Ind.), Shelley Moore Capito (R-W.Va.), Tom Cotton (R-Ark.), Kevin Cramer (R-N.D.), Steve Daines, (R-Mont.), Joni Ernst (R-Iowa), 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 legislation can be found here.