US Senate Republicans on Monday proposed a tax and budget bill that would end the $7,500 (R133,691) tax credit on new electric vehicle sales 180 days after the measure is signed into law and immediately end the credit for leased EVs made outside North America.
Republicans have taken aim at EVs on a number of fronts, a U-turn from former president Joe Biden's policy that encouraged EVs and renewable energy to fight climate change and reduce emissions.
The Republican Senate finance committee proposal would also end a $4,000 (R71,302) used-vehicle EV tax credit 90 days after the bill's approval.
The Senate Republicans propose to end, effective on June 16, the $7,500 credit for leased vehicles that would also not meet the purchasing credit. Leased vehicles qualify without any restrictions on content or where they were assembled.
Leased vehicles could get the tax credit for 180 more days after passage of the measure if they meet the same stringent North American assembly, battery and critical mineral content rules as purchased vehicles.
The House of Representatives version would allow the $7,500 new EV tax credit to continue through to the end of 2025, and through to the end of 2026 for carmakers that have not yet sold 200,000 EVs before killing it.
The Republican Senate proposal would exempt interest paid on car loans from taxes for new cars made in the US through to 2028, but phases it out for individual taxpayers making more than $100,000 (R1.8m) annually.
The House bill would impose a new $250 (R4,457) annual fee on EVs for road repair costs and $100 (R1,783) for hybrid vehicles. The House bill would phase out EV battery production tax credits in 2028.
President Donald Trump last week signed a resolution approved by Congress to bar California's landmark plan to end the sale of petrol-only vehicles by 2035, which has been adopted by 11 other states representing a third of the US car market.
Senate Republicans seek to kill $7,500 EV tax credit
Image: Justin Sullivan/Getty Images
US Senate Republicans on Monday proposed a tax and budget bill that would end the $7,500 (R133,691) tax credit on new electric vehicle sales 180 days after the measure is signed into law and immediately end the credit for leased EVs made outside North America.
Republicans have taken aim at EVs on a number of fronts, a U-turn from former president Joe Biden's policy that encouraged EVs and renewable energy to fight climate change and reduce emissions.
The Republican Senate finance committee proposal would also end a $4,000 (R71,302) used-vehicle EV tax credit 90 days after the bill's approval.
The Senate Republicans propose to end, effective on June 16, the $7,500 credit for leased vehicles that would also not meet the purchasing credit. Leased vehicles qualify without any restrictions on content or where they were assembled.
Leased vehicles could get the tax credit for 180 more days after passage of the measure if they meet the same stringent North American assembly, battery and critical mineral content rules as purchased vehicles.
The House of Representatives version would allow the $7,500 new EV tax credit to continue through to the end of 2025, and through to the end of 2026 for carmakers that have not yet sold 200,000 EVs before killing it.
The Republican Senate proposal would exempt interest paid on car loans from taxes for new cars made in the US through to 2028, but phases it out for individual taxpayers making more than $100,000 (R1.8m) annually.
The House bill would impose a new $250 (R4,457) annual fee on EVs for road repair costs and $100 (R1,783) for hybrid vehicles. The House bill would phase out EV battery production tax credits in 2028.
President Donald Trump last week signed a resolution approved by Congress to bar California's landmark plan to end the sale of petrol-only vehicles by 2035, which has been adopted by 11 other states representing a third of the US car market.
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