- Republican Senator John Barrasso introduced a bill to eliminate the $7,500 tax credit for electric vehicles.
- The bill aims to stop subsidizing what Barrasso calls “luxuries of the nation’s elite” and curb Chinese influence in the EV market.
A member of Republican leadership in the U.S. Senate on Wednesday introduced legislation to get rid of a tax credit that can provide consumers a subsidy of up to $7,500 toward the purchase of certain electric vehicles.
U.S. Sen. John Barrasso, of Wyoming, who as Senate whip is the second-ranking member of the Republican majority in the chamber, introduced the bill which would get rid of the subsidy enacted in 2022 as a key incentive toward getting consumers to purchase electric vehicles, or EVs, as a way to curb greenhouse gas emissions.
President Donald Trump, who was reelected in November, vowed during his campaign to get rid of the subsidy and signed executive orders last month reversing former President Joe Biden’s efforts to spur EV adoption.
Barrasso’s bill, which was cosponsored by Senate Majority Leader John Thune, R-South Dakota, as well as several other Republican leaders, also would end tax credits intended to encourage businesses and consumers to install EV charging stations and those for leasing certain EVs.
“The hard-earned money of taxpaying Americans should not cover the cost for the luxuries of the nation’s elite. Nor should we be allowing China to infiltrate our markets and undermine our supply chain,” said Barrasso, referring to concerns that EVs are considered by some buyers to be too expensive to purchase and that some Chinese companies have been helped by making components or providing materials for vehicles eligible for the tax credits.
“Repealing these reckless tax credits from the Biden administration once and for all will stop Washington from giving handouts to our adversaries and high-income individuals,” he said.
Barrasso’s office noted that the legislation was supported by the American Fuel & Petrochemical Manufacturers, a trade association for the petroleum industry.
Contact Todd Spangler: tspangler@freepress.com. Follow him on Twitter@tsspangler.
