Barrasso to McConnell: Don’t expand EV tax credit

Source: By Maxine Joselow, E&E News reporter • Posted: Wednesday, September 4, 2019

Senate Environment and Public Works Chairman John Barrasso is redoubling his efforts to kill the federal electric vehicle tax credit.

It began in February, when the Wyoming Republican introduced legislation to end the tax credit and impose a new fee on EV drivers (E&E News PM, Feb. 6).

And it continues in this recess with Barrasso circulating a letter asking Senate Majority Leader Mitch McConnell (R-Ky.) to reject a competing bill aimed at expanding the EV tax credit. The Wall Street Journal was first to report on the letter.

EV buyers can currently receive a tax credit of up to $7,500. The credit begins to phase out after a U.S. automaker has sold 200,000 eligible vehicles. General Motors Co. and Tesla Inc. have both hit that threshold.

The competing bill is sponsored by Sens. Lamar Alexander (R-Tenn.), Debbie Stabenow (D-Mich.) and Gary Peters (D-Mich.). It would extend a $7,000 subsidy for an additional 400,000 vehicles per manufacturer.

The Wall Street Journal editorial board praised Barrasso’s efforts today, calling the EV tax credit a handout for wealthy Americans.

“It’s hard to imagine a more blatant income transfer for the well-to-do,” the board wrote.