Bill Summary
The "End Taxpayer Subsidies for Electric Vehicles Act" is a proposed amendment to the Internal Revenue Code that seeks to repeal the clean vehicle credit, specifically Section 30D. This tax credit has historically provided financial incentives for consumers purchasing electric vehicles (EVs). The bill outlines the removal of this credit and includes several conforming amendments to other sections of the tax code to ensure consistency following the repeal. The changes will take effect for vehicles placed in service in any calendar year following the bill's enactment. Essentially, this legislation aims to eliminate taxpayer-funded subsidies for the purchase of electric vehicles.
Possible Impacts
The proposed legislation titled the "End Taxpayer Subsidies for Electric Vehicles Act," which repeals the clean vehicle credit, could affect people in various ways. Here are three examples:
1. **Increased Costs for Electric Vehicle Buyers**: The repeal of the clean vehicle credit would mean that individuals purchasing electric vehicles (EVs) would no longer receive the associated tax credits. This could result in higher upfront costs for consumers, making EVs less financially accessible and potentially discouraging their adoption. As a result, consumers who were considering an electric vehicle purchase may opt for traditional gasoline-powered vehicles instead, impacting their long-term fuel and maintenance expenses.
2. **Impact on the Electric Vehicle Market**: The removal of subsidies could lead to a slowdown in the growth of the electric vehicle market. As demand for EVs decreases due to higher prices, manufacturers may reduce production or investment in EV technology and infrastructure. This could lead to fewer options for consumers, less innovation in the industry, and potentially slower progress in achieving environmental goals related to reducing carbon emissions from transportation.
3. **Economic Effects on Related Industries**: Industries related to electric vehicles, such as battery manufacturing, charging infrastructure development, and renewable energy sectors, could face economic challenges. If consumers are less inclined to purchase EVs due to the lack of financial incentives, this could lead to reduced investment in these industries, job losses, or a slowdown in technological advancements. Additionally, local economies that rely on the presence of EV manufacturers or charging stations may experience negative impacts, such as decreased revenue and job opportunities.
Overall, the repeal of the clean vehicle credit could have far-reaching implications for consumers, the automotive industry, and the broader economy.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2566 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2566
To amend the Internal Revenue Code of 1986 to repeal the clean vehicle
credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 1, 2025
Mr. McClintock (for himself, Mr. Clyde, and Mr. Cloud) 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 clean vehicle
credit.
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 ``End Taxpayer Subsidies for Electric
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)(3)(B)(ii) of such Code is amended by
inserting ``, as in effect on the day before the date of the
enactment of the End Taxpayer Subsidies for Electric Vehicles
Act'' after ``section 30D(g)(9)''.
(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
inserting ``, as in effect on the day before the date of the
enactment of the End Taxpayer Subsidies for Electric Vehicles
Act'' after ``section 30D(g)(9)''.
(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 day
before the date of the enactment of the End Taxpayer Subsidies
for Electric 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 placed in service during any calendar year beginning
after the date of enactment of this Act.
<all>