Contact: Noah Barnes, Electrification Coalition
noah@electrification.org, (202) 461-2371
WASHINGTON—On Monday, the Senate Finance Committee released legislative text that, if passed, would end tax credits related to transportation electrification.
The proposed text would eliminate the current electric vehicle (EV) tax credit, which provides up to $7,500 for the purchase of eligible electric vehicles 180 days after enactment of the bill. This credit also requires vehicles and battery components to be sourced and manufactured in the United States.
Under this legislation, the EV charging infrastructure tax credit would also be eliminated within 12 months of enactment, and the commercial EV tax credit would be eliminated within 180 days of enactment.
After years of planning and billions in commitments, the proposed legislation causes major whiplash to the industry by rapidly terminating these credits designed to grow U.S. manufacturing and align supply chains to compete in the global shift to electric transportation. If this bill passes, demand for EVs is expected to drop significantly, costing thousands of jobs and billions in manufacturing investments across the Battery Belt.
Electrification Coalition Executive Director Ben Prochazka responded:
“By proposing to rapidly zero out the tax credits, the Senate Finance Committee is taking away critical investment in the U.S. and potentially handing over the future of global auto markets to foreign entities of concern like China, who have raced ahead to lead in electrification. The United States must continue investing in EV manufacturing to create jobs and remain globally competitive. Rolling back support for transportation electrification will leave the United States far behind in the global race for the future of transportation.
“EVs are essential to strengthening domestic supply chains of critical minerals, as outlined in an executive order signed by President Trump, and defending U.S. economic competitiveness. The EV sector is one of the fastest-growing industries in the country, supporting hundreds of thousands of high-quality American jobs and driving innovation across the U.S. auto manufacturing base.
“At a time when China is rapidly expanding its dominance in the global EV market, the United States cannot afford to retreat. Pulling the plug on EV investments would cede our leadership to geopolitical rivals and put American workers, businesses, and consumers at a disadvantage. It is precisely this unstable policy environment that has prevented the United States from building out key supply chains for advanced manufacturing and for critical minerals.
“We urge the Senate to significantly revise this proposal and instead advance policies that support American innovation, empower consumer choice, and secure our nation’s dominance in the 21st-century transportation economy.”
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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