Contact: Noah Barnes, Electrification Coalition
noah@electrification.org, (202) 461-2371
WASHINGTON—The House Ways & Means Committee released draft legislative text for markup that, if passed, would effectively kill the electric vehicle (EV) tax credits for the majority of the auto industry by the end of this year.
The targeted credits for termination include:
- Section 30D (New Clean Vehicles), which provides up to $7,500 for the purchase of an eligible new clean vehicle,
- Section 30C (Alternative Fuel Infrastructure), which provides up to $1,000 for eligible refueling infrastructure,
- Section 45X (Advanced Manufacturing Production), which subsidizes a percentage of the cost of producing certain clean energy technologies,
- Section 45W (Commercial Clean Vehicle), which provides up to $7,500 for the purchase of eligible vehicles under 14,000 lbs. and up to $40,000 for those over 14,000 lbs., and
- Section 25E (Used Clean Vehicles), which provides up to $4,000 for the purchase of an eligible used clean vehicle.
EC Executive Director Ben Prochazka has issued the following statement in response:
“Today’s draft legislative text would represent a troubling step back for the automotive and the broader EV industry in the U.S. The electric transportation sector is a critical and rapidly growing part of the U.S. economy and is paramount in the global race to control the future of transportation. The U.S. must continue with an aggressive approach to policy and market incentives to ensure we can compete with fierce competition from abroad, especially China. Additionally, electrification diversifies how we power our cars, trucks, and buses, reducing our reliance on volatile oil markets and improving our economic and national security.
“These tax credits have already spurred hundreds of billions of dollars of private-sector investments in domestic manufacturing, created hundreds of thousands of well-paying jobs, and increased the U.S. auto industry’s global competitiveness. They have enticed companies, including auto manufacturers, battery producers and suppliers of critical minerals, to make long-term investments in the United States. Dismantling these investments would potentially strand billions of dollars of assets, challenge the economy, reduce U.S. jobs and disincentivize future investment in the U.S.
“As the Trump administration recognized, our economy and military depend on reliable supplies of critical minerals, which can only be secured by creating and maintaining a robust domestic EV industry. Hindering the development of the U.S. EV industry at a moment when China (which controls the majority of global critical mineral mining and processing capabilities) has begun to restrict exports of these materials to the United States would threaten U.S. military, manufacturing and innovation capabilities.
“While the EV market must and will eventually survive without incentives, this reversal will create an uncertain market in the U.S., potentially affecting jobs and communities across the country. We urge members of Congress to recognize the economic and national security imperative of these policies and encourage an approach that preserves the EV incentives and the future of the auto industry.”
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About the Electrification Coalition: The Electrification Coalition is a nonpartisan, nonprofit organization that promotes policies and actions to facilitate the widespread adoption of plug-in electric vehicles (EVs) on a mass scale to overcome the economic, public health and national security challenges that stem from America’s dependence on oil. ElectrificationCoalition.org