A week after criticizing federal tax credits for electric vehicles, Oklahoma U.S. Sen. James Lankford joined forces with Wyoming Republican Sen. John Barrasso to file legislation to bring an end to the tax credits for EVs and charging stations.
Their Eliminating Lavish Incentives to Electric (ELITE) Vehicles Act stops taxpayer money from subsidizing the purchase of luxury electric vehicles for high-income individuals and corporations.
This bill specifically repeals the $7,500 tax credit for new electric vehicles (EVs), eliminates the tax credit for purchasing used EVs, wipes out the federal investment tax credit for electric vehicle charging stations, and closes the “leasing loophole” that has allowed certain taxpayers and foreign entities to evade restrictions on EV incentives.
This legislation would also prevent China from exploiting loopholes and circumventing guardrails to access US tax credits associated with electric vehicles.
“The Biden Administration loves giving Americans’ hard-earned tax money away to his preferred voters. The latest examples are his tax breaks for luxury electric vehicles and free charging stations. We should lower the price of energy for all Americans, especially for those who need it most,” said Lankford.
Sen. Barrasso was equally critical, saying the tax credits benefit the wealthiest of Americans and at the same time, costs hardworking American taxpayers billions of dollars.
“The federal government has no business pushing Americans into expensive electric cars they don’t want or can’t afford. Repealing these tax credits keeps China out of our markets and lets Americans, not Washington, use their hard-earned money to purchase the vehicles that are best for them,” added Barrasso.
Co-sponsors of this legislation include Senators Mike Braun (R-IN), Shelley Moore Capito (R-WV), Tom Cotton (R-AR), Kevin Cramer (R-ND), Steve Daines, (R-MT), Joni Ernst (R-IA), John Hoeven (R-ND), Mike Lee (R-UT), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Pete Ricketts (R-NE), Jim Risch (R-ID), Mike Rounds (R-SD), Marco Rubio (R-FL), Eric Schmitt (R-MO), Rick Scott (R-FL), and John Thune (R-SD).
This legislation is supported by Americans for Prosperity, the National Taxpayers Union, and Heritage Action.