Bill Summary
The "Eliminate Lavish Incentives To Electric Vehicles Act" (ELITE Vehicles Act) proposes several amendments to the Internal Revenue Code of 1986 aimed at repealing tax credits associated with electric vehicles (EVs). Key provisions of the bill include:
1. **Repeal of Clean Vehicle Credits**: The Act eliminates the tax credit for the purchase of new clean vehicles under Section 30D, as well as the credits for previously-owned clean vehicles (Section 25E) and for qualified commercial clean vehicles (Section 45W).
2. **Exclusion of EV Recharging Property**: The legislation also modifies the definition of qualified alternative fuel vehicle refueling property by excluding electric vehicle recharging property from eligibility for related tax credits.
3. **Effective Dates**: The amendments will apply to vehicles purchased or for which a binding purchase contract is entered into 30 days after the enactment of the bill.
Overall, this legislation aims to reduce or eliminate federal financial incentives for the purchase and use of electric vehicles and associated infrastructure.
Possible Impacts
The "Eliminate Lavish Incentives To Electric Vehicles Act" (ELITE Vehicles Act) proposes the repeal of various tax credits related to clean vehicles. Here are three examples of how this legislation could affect people:
1. **Increased Costs for Consumers**: The repeal of the clean vehicle credit means that consumers purchasing new electric vehicles (EVs) or previously owned clean vehicles will no longer receive tax credits that could significantly reduce the overall cost of these vehicles. This could lead to a decrease in the affordability of EVs for many potential buyers, particularly those who rely on these incentives to make the switch from traditional gasoline-powered vehicles.
2. **Impact on the Automotive Market**: The elimination of tax credits for qualified commercial clean vehicles could deter businesses that were considering investing in electric or hybrid fleets. This could slow down the adoption of cleaner transportation options in commercial sectors, such as delivery services or ride-sharing companies. As a result, businesses might miss out on potential long-term savings from lower fuel costs and maintenance associated with EVs, while also impacting their environmental goals.
3. **Decreased Incentives for Charging Infrastructure**: By excluding electric vehicle recharging property from the alternative fuel vehicle refueling property credit, the legislation could disincentivize businesses and individuals from investing in EV charging stations. This could lead to a slower expansion of charging infrastructure, making it more challenging for EV owners to find charging options, thereby limiting the convenience of owning an electric vehicle and potentially stalling the broader transition to electric mobility.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1367 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1367
To amend the Internal Revenue Code of 1986 to repeal the credit for new
clean vehicles, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 14, 2025
Mr. Arrington (for himself, Mr. Estes, Ms. Van Duyne, Mr. Ellzey, Mr.
Smith of Nebraska, Mr. Feenstra, Mr. Weber of Texas, Mr. Yakym, Mr.
Moran, Mr. Palmer, Ms. Tenney, and Ms. Fedorchak) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to repeal the credit for new
clean vehicles, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Eliminate Lavish Incentives To
Electric Vehicles Act'' or the ``ELITE Vehicles Act''.
SEC. 2. REPEAL OF CLEAN VEHICLE CREDIT.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by striking section 30D
(and by striking the item relating to such section in the table of
sections for such subpart).
(b) Conforming Amendments.--
(1) Section 30B(d)(3) of the Internal Revenue Code of 1986
is amended by striking subparagraph (D).
(2) Section 38(b) of such Code is amended by striking
paragraph (30).
(3) Section 179D(d) of such Code is amended--
(A) in paragraph (3)(B)(ii), by striking ``(as
defined in section 30D(g)(9))'', and
(B) by adding at the end the following new
paragraph:
``(6) Indian tribal government.--For purposes of this
subsection, the term `Indian tribal government' means the
recognized governing body of any Indian or Alaska Native tribe,
band, nation, pueblo, village, community, component band, or
component reservation, individually identified (including
parenthetically) in the list published most recently as of the
date of enactment of this paragraph pursuant to section 104 of
the Federally Recognized Indian Tribe List Act of 1994 (25
U.S.C. 5131).''.
(4) Section 1016(a) of such Code is amended--
(A) in paragraph (36), by adding ``and'' at the
end,
(B) by striking paragraph (37), and
(C) by redesignating paragraph (38) as paragraph
(37).
(5) Section 6213(g)(2) of such Code is amended by striking
subparagraph (T).
(6) Section 6417(d)(1)(A)(iv) of such Code is amended by
striking ``section 30D(g)(9)'' and inserting ``section
179D(d)(6)''.
(7) Section 6501(m) of such Code is amended by striking
``30D(f)(6),''.
(8) Section 166(b)(5)(A)(ii) of title 23, United States
Code, is amended by inserting ``, as in effect on the date of
the enactment of the ELITE Vehicles Act'' after ``section
30D(d)(1) of the Internal Revenue Code of 1986''.
(c) Effective Date.--The amendments made by this section shall
apply to vehicles purchased, or for which a written binding contract to
purchase has been entered into, after the date which is 30 days after
the date of enactment of this Act.
SEC. 3. REPEAL OF CREDIT FOR PREVIOUSLY-OWNED CLEAN VEHICLES.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by striking section 25E
(and by striking the item relating to such section in the table of
sections for such subpart).
(b) Conforming Amendment.--Section 6213(g)(2) of the Internal
Revenue Code of 1986 is amended by striking subparagraph (U).
(c) Effective Date.--The amendments made by this section shall
apply to vehicles purchased, or for which a written binding contract to
purchase has been entered into, after the date which is 30 days after
the date of enactment of this Act.
SEC. 4. REPEAL OF CREDIT FOR QUALIFIED COMMERCIAL CLEAN VEHICLES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by striking section 45W
(and by striking the item relating to such section in the table of
sections for such subpart).
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986, as
amended by sections 13502, 13701, and 13704 of Public Law 117-
169, is amended--
(A) by striking paragraph (37), and
(B) by redesignating paragraphs (38) through (41)
as paragraphs (37) through (40), respectively.
(2) Section 6213(g)(2) of such Code is amended--
(A) by adding ``and'' at the end of subparagraph
(R),
(B) by striking the comma at the end of
subparagraph (S) and inserting a period, and
(C) by striking subparagraph (V).
(c) Effective Date.--The amendments made by this section shall
apply to vehicles purchased, or for which a written binding contract to
purchase has been entered into, after the date which is 30 days after
the date of enactment of this Act.
SEC. 5. EXCLUSION OF ELECTRIC VEHICLE RECHARGING PROPERTY FROM
ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.
(a) In General.--Section 30C of the Internal Revenue Code of 1986
is amended--
(1) in subsection (c)--
(A) in paragraph (1)(B), by striking clause (iii),
and
(B) by striking paragraph (2) and inserting the
following:
``(2) Exclusion of electric vehicle recharging property.--
The term `qualified alternative fuel vehicle refueling
property' shall not include any property for the recharging of
motor vehicles propelled by electricity.'', and
(2) by striking subsection (f).
(b) Effective Date.--The amendments made by this section shall
apply to property purchased, or for which a written binding contract to
purchase has been entered into, after the date which is 30 days after
the date of enactment of this Act.
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