GOP Lawmakers Push to End EV Tax Credit, Introduce New Fees for Electric Vehicles
A group of Republican senators, led by Sen. John Barrasso (R-Wyo.), has introduced legislation that could bring an abrupt end to the $7,500 federal EV tax credit, potentially taking effect just 30 days after enactment.
The bill, which has the support of 14 co-sponsors, could have far-reaching implications for automakers like GM and Ford, both of which have advocated for a gradual phaseout of the credit rather than an immediate repeal.
The proposal comes as another bill, introduced by Sen. Deb Fischer (R-Neb.), seeks to impose a $1,000 federal tax on new EV purchases to account for road usage fees, arguing that EV owners do not contribute to gas taxes that fund infrastructure.
However, critics argue that such measures, coupled with existing state-level EV fees, disproportionately burden EV buyers while ignoring the fact that EVs generally travel fewer miles than gasoline and diesel vehicles.
According to the federal government (the DOE), EVs cover 12% fewer miles on average than gasoline vehicles and 29% fewer miles than diesel models.
The federal fee would impact EV buyers in addition to premiums already levied for EV use or ownership by individual states. It’s an issue that many have stepped up to address with various solutions – the question of whether there should be an “electric fuel” tax for EVs that, like gasoline, is based on real-world use.
According to the Environmental and Energy Study Institute, the U.S. provides about $20 billion in fossil fuel subsidies annually, with about 80% of that going to natural gas and crude oil.
Meanwhile, the oil industry has welcomed efforts to dismantle EV incentives, calling for a “level playing field.”
