New bill targets electric vehicle tax credit extension

A group of Democratic senators recently introduced a bill designed to extend the electric vehicle tax credit for 10 years.

U.S. Sens. Dianne Feinstein (D-CA), Jeff Merkley (D-OR), Martin Heinrich (D-NM) and Catherine Cortez Masto (D-NV) announced the introduction of the Electric Cars Act of 2018 on Sept. 17. The measure was first introduced in the House of Representatives by U.S. Reps. Peter Welch (D-VT) and Jacky Rosen (D-NV) in June.

The Electric Vehicle (EV) tax credit has been instrumental in helping American electric vehicle manufacturers, officials said, such as Tesla and General Motors advance the EV market, offering
more options to consumers.

“It’s crazy that we might allow the electric vehicle tax credit to run out just as the American EV market is starting to gain a foothold,” Merkley said. “Every day, we see the effects of climate chaos all around us – record-setting droughts, out-of-control wildfires, destructive mega-storms, and spreading insects and ocean acidification. Market-based incentives that help EVs compete with gas-powered cars are not only good for our economy, they’re essential to our future.”

Heinrich said at a time when electric cars are making advances in scale of production and becoming more competitive in the marketplace, legislators need to continue encouraging the progress.

“This bill is pro-growth tax policy that will keep us moving our transportation sector forward,” he said. “We need to remember that making our cars cleaner and modernizing our energy use overall, isn’t just about creating new jobs, or harnessing our innovative clean energy potential. It is about meeting our moral imperative to reduce carbon pollution and mitigate the devastating and costly consequences of climate change.”

A recent survey found that 74 percent of consumers say the tax credit would affect their decision to buy an EV, and 63 percent said the credit is an important measure to support EV adoption.

The Electric Cars Act would improve the tax credit by eliminating the per manufacturer cap, allowing consumers access to the tax credit for the next 10 years, regardless of the manufacturer from which they purchase their car, according to the lawmakers’ statement. Buyers would be allowed to use the tax credit over a five-year period, or apply the credit at the point of sale. The bill would provide a 10-year extension of tax credits for alternative fuel vehicles and charging infrastructure to incentivize the buildout of EV infrastructure around the country.