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house Bill H.R. 7065

Should the Electric Car Tax Credit Be Phased-Out in 2022 & Apply to All Electric Cars Until Then?

Argument in favor

Tax credits for electric cars will no longer be needed after 2022, as these vehicles are becoming more popular with consumers and no longer need a hefty tax credit to incentivize sales. Until the 2022 phase-out, however, it doesn’t make sense to limit the electric car tax credit to only certain manufacturers’ vehicles.

Joseph's Opinion
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11/16/2018
I would say get rid of it now free markets can do better. We don’t need government using our money to push the market. Government is a referee not a player.
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11/16/2018
Eliminate the credit and let all companies compete for the sales dollars and the prices will drop accordingly.
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Mark's Opinion
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11/16/2018
The electric car tax credit should never existed in the first place and should now be phased out. The environmental damage being done through the manufacturing of the batteries for these monsters would make any Sierra Club activist freak out if they knew the truth. With an electric car, all you have done is moved the pollution source from the car to the power plant that makes the electricity to charge it. So there is no net benefit and in fact a massive negative to the environment when you account for all the toxic waste created by the manufacturing of the car batteries and the massive cost of disposal when the car is no longer serviceable. PS: don’t lay the solar power argument on me. That doesn’t work either because of the toxic metals required to make a solar panel, all the strip mining and water wasted get to and refine those metals etc.
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Argument opposed

The electric car tax credit remains an important consideration to help EVs compete with gas-powered cars. At a time of rising effects from climate change, it’s important for the government to do everything it can do encourage electric, versus gas, car ownership.

Mark's Opinion
···
11/16/2018
We need to encourage alternative energy solutions such as electric cars!
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Time2livelife's Opinion
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11/16/2018
Electric cars are too expensive and the tax credit is the only way to help lower and middle income families afford the extra expense.
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Jim2423's Opinion
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11/16/2018
No electric vehicles are still on the new side and a little expensive. Out west still not enough charging station even to meet Tesla 300 mile limit. Electric is the way to go in cities so keep the tax incentives. By then the states will have figured a mileage tax for licenses. Hey if the automakers got bailouts why not give a tax break. If the car is made outside of US, no tax break.
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What is House Bill H.R. 7065?

This bill would phase-out the $7,500 electric car tax credit beginning in the 2022 calendar year, and allow automakers to retain the credit for their cars after they’ve sold 200,000 qualifying vehicles in the U.S. by eliminating the sales cap.

Currently, the credit phases out for a manufacturer's vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States after December 31, 2009.

Impact

Electric cars; automakers; and the tax code.

Cost of House Bill H.R. 7065

A CBO cost estimate is unavailable.

More Information

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:

Summary by Lorelei Yang

(Photo Credit: iStockphoto.com / nrqemi)

Official Title

To amend the Internal Revenue Code of 1986 to establish a new phaseout of the credit for plug-in electric drive motor vehicles.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      Committee on Ways and Means
    IntroducedOctober 16th, 2018
    I would say get rid of it now free markets can do better. We don’t need government using our money to push the market. Government is a referee not a player.
    Like (36)
    Follow
    Share
    We need to encourage alternative energy solutions such as electric cars!
    Like (116)
    Follow
    Share
    Electric cars are too expensive and the tax credit is the only way to help lower and middle income families afford the extra expense.
    Like (78)
    Follow
    Share
    No electric vehicles are still on the new side and a little expensive. Out west still not enough charging station even to meet Tesla 300 mile limit. Electric is the way to go in cities so keep the tax incentives. By then the states will have figured a mileage tax for licenses. Hey if the automakers got bailouts why not give a tax break. If the car is made outside of US, no tax break.
    Like (53)
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    Don’t forget the science! Once the energy density of batteries are comparable to gasoline engines, then the tax credit becomes unnecessary. Until then, regulatory forces are needed to help electric cars be competitive in the market.
    Like (27)
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    Eliminate the credit and let all companies compete for the sales dollars and the prices will drop accordingly.
    Like (19)
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    So, like all Republican bills, you want to take away the tax credit for consumers and improve the credit for big business. We need to stay motivated people and get this Trump-Republican White Nationalist Party out of office.
    Like (17)
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    We should be encouraging more proliferation of these vehicles
    Like (15)
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    Good deeds for the community big and small should be incentivized.
    Like (12)
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    The electric car tax credit should never existed in the first place and should now be phased out. The environmental damage being done through the manufacturing of the batteries for these monsters would make any Sierra Club activist freak out if they knew the truth. With an electric car, all you have done is moved the pollution source from the car to the power plant that makes the electricity to charge it. So there is no net benefit and in fact a massive negative to the environment when you account for all the toxic waste created by the manufacturing of the car batteries and the massive cost of disposal when the car is no longer serviceable. PS: don’t lay the solar power argument on me. That doesn’t work either because of the toxic metals required to make a solar panel, all the strip mining and water wasted get to and refine those metals etc.
    Like (10)
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    TAX CREDITS FOR ELECTRIC 🚘 CARS Tax credits for electric 🚙 cars will no longer be needed after 2022, as these vehicles are becoming more popular with consumers and no longer need a hefty tax credit to incentivize sales. Until the 2022 phase-out, however, it doesn’t make sense to limit the electric car tax credit to only certain manufacturers’ vehicles. SneakyPete..... 🚙🚘🚖🚔. 11*16*18.....
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    The tax credit was wrong from the start.
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    Republicans don’t sponsor responsible environmental legislation. They sponsor legislation that breaks innovation and funnel profit to their industry and corporate owners. Follow the money. Black has received almost a million $$$ from 3 industries. Insurance, oil and gas, and automotive. More than half the money she has ever raised is from superPACs and corporations. 🤔🤔🤔
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    We need to encourage more and more people to use alternative energy vehicles as well as solar and wind power.
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    People who drive electric or hybrids should get a tax break.
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    why should big oil and gas companys who make trillions get all subsidization ? how about we phase those out first.
    Like (4)
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    I agree with the phase out. Let the free market work.
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    People who use cars that save energy, oil, gas, etc. should be rewarded with tax credit.
    Like (4)
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    No give car buyers an incentive to go electric.
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    We have only had electric car subsidies for a few years. It makes far more sense to stop subsidies for oil and gas which have been in effect for many decades first.
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