Bill Summary
This bill, called "Ending the Electric Vehicle Entitlement for the Wealthy," proposes to amend the Internal Revenue Code of 1986 to eliminate the credit for qualified plug-in electric drive motor vehicles for certain taxpayers. This means that individuals or couples with a certain level of income will no longer be eligible for a tax credit when purchasing a new electric vehicle. The bill also includes a provision for adjusting the income threshold amount for inflation starting in 2021. This change would take effect for taxable years beginning after December 31, 2020.
Possible Impacts
1. The legislation could affect taxpayers who intend on purchasing a new qualified plug-in electric drive motor vehicle. If their adjusted gross income exceeds the threshold amount, they will no longer be eligible for the credit, potentially resulting in increased costs for the vehicle.
2. The legislation could also affect car manufacturers who produce and sell qualified plug-in electric drive motor vehicles. The elimination of the credit for certain taxpayers may decrease demand for these vehicles, potentially impacting their sales and revenue.
3. The legislation could also impact the overall promotion and adoption of electric vehicles, as the credit was initially intended to incentivize the use of more environmentally friendly vehicles. With the credit no longer available for certain taxpayers, it may discourage some individuals from purchasing electric vehicles.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3594 Introduced in Senate (IS)]
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116th CONGRESS
2d Session
S. 3594
To amend the Internal Revenue Code of 1986 to eliminate the credit for
qualified plug-in electric drive motor vehicles for certain taxpayers.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 4, 2020
Mr. Braun (for himself and Ms. Ernst) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to eliminate the credit for
qualified plug-in electric drive motor vehicles for certain taxpayers.
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 ``Ending the Electric Vehicle
Entitlement for the Wealthy''.
SEC. 2. ELIMINATION OF PERSONAL CREDIT BASED ON ADJUSTED GROSS INCOME.
(a) In General.--Subsection (c) of section 30D of the Internal
Revenue Code of 1986 is amended--
(1) in paragraph (2), by inserting ``and (3)'' after
``paragraph (1)'', and
(2) by adding at the end the following new paragraph:
``(3) Elimination of personal credit based on adjusted
gross income.--
``(A) In general.--For purposes of paragraph (2),
in the case of any new qualified plug-in electric drive
motor vehicle which is placed in service by a taxpayer
during any taxable year, if the adjusted gross income
of such taxpayer for such taxable year exceeds the
threshold amount, the amount of the credit otherwise
allowable under subsection (a) for such taxable year
shall be reduced to zero.
``(B) Threshold amount.--For purposes of this
paragraph, the term `threshold amount' means--
``(i) in the case of any taxpayer filing a
joint return for the taxable year, $326,600,
and
``(ii) in the case of any taxpayer not
filing a joint return for the taxable year,
$163,300.
``(C) Inflation adjustment.--
``(i) In general.--In the case of any
taxable year beginning after 2021, each of the
dollar amounts in subparagraph (B) shall be
increased by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for the calendar year in which
the taxable year begins by substituting
`calendar year 2020' for `calendar year
2016' in subparagraph (A)(ii) thereof.
``(ii) Rounding.--If any increase
determined under clause (i) is not a multiple
of $100, such increase shall be rounded to the
nearest multiple of $100.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2020.
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