In-Depth: Rep. Diane Black (R-TN) introduced this bill to establish a new phase-out of the credit for plug-in electric drive motor vehicles.

Sen. Jeff Merkley (D-OR), the sponsor of a competing bill extending the electric vehicle tax credit for another decade, argues that the electric vehicle tax credit is good for both customers’ finances and the environment:

“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. 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.”

This bill has the support of two cosponsors, both of whom are Republicans, as well as Tesla and GM, who are both lobbying Congress in favor of this bill.

Of Note: In the short term, this legislation helps Tesla and other large automakers focusing on electric vehicles, such as GM and Nissan. In the long term, it’d help large companies, as well, by no longer incentivizing consumers to purchase electric cars from smaller companies from whom they’d receive bigger tax credits.

Media:

• Sen. Jeff Merkley (D-OR) Press Release (Opposed)