Press Releases

Washington, D.C. – Today, House Budget Chairman Jodey Arrington (TX-19) introduced legislation to end the federal electric vehicle and charging stations tax credit. The Eliminating Lavish Incentives to Electric (ELITE) Vehicles Act would stop taxpayer money from subsidizing the purchase of luxury electric vehicles for high-income individuals and corporations. Companion legislation has been filedin the Senate by Senator John Barrasso (R-WY). 

“Fueled by the climate-crazed Left, Democrats jammed through legislation that provided tax subsidies for expensive electric vehicles, which has worsened inflation for working families and stuck the American people with the bill - to the tune of billions of dollars,” said Chairman Arrington. “I’m proud to join Senator John Barrasso and lead my colleagues in the House to repeal this wasteful and heavy-handed tax law.”

 Background:

The ELITE Act repeals the $7,500 tax credit for new electric vehicles, eliminates the tax credit for purchasing used electric vehicles, ends the federal investment tax credit for electric vehicle charging stations, and closes the “leasing loophole” that has allowed certain taxpayers and foreign entities like China to evade restrictions on electric vehicle incentives.

The Joint Committee on Tax originally scored these electric vehicle tax credits to cost $14 billion over 10 years, but private firms later estimated the real cost would be over $390 billion.

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