Sen. Lankford Introduces Legislation To Stop Lavish Electric Vehicle Tax Credits

WASHINGTON, DC – Senators James Lankford (R-OK) and John Barrasso (R-WY) introduced legislation to end the federal electric vehicle and charging stations tax credit. The 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. (Dr.Sakharov: Hey! What about the hydrogen fuel cars? They have even more incentives, and the technology is way far from being adopted.)

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. (Dr.Sakharov: Have anyone ever seen Chinese vehicle on the street? Not EV, just the regular one. Neither do I.)

“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. 

“The electric vehicle tax credit benefits the wealthiest of Americans and costs hardworking American taxpayers billions of dollars,” said Barrasso. “Working families in Wyoming shouldn’t be footing the bill for the luxuries of Biden’s climate elitists. 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.”

(Dr. Sakharov: Senators Lankford and Barrasso's focus on ensuring these incentives are reaching the most impactful areas is certainly worth considering. While some might argue that a broader approach to consumer incentives could be beneficial, there's merit to exploring alternative strategies for maximizing the environmental benefits of electric vehicle adoption.

EV adoption is a next step for automotive industry, but the true bottleneck isn't the cost of the car itself. It's the infrastructure –  we need a robust network of charging stations throughout the country, and that requires significant investment in electricity generation and transmission capacity.  Subsidies could be better targeted towards this infrastructure build-out, not just eliminating incentives for consumers altogether. After all, even the most fuel- and financially-efficient electric car is useless if you're stuck on the side of the road for hours waiting for a charge. 

Furthermore, let's not forget the importance of maintaining grid stability with all these new EVs plugged in.  Renewables are fantastic, but they're not always sunshine and rainbows –  ξηρανέμια (xēranemia, drought) can hamper solar, and wind isn't always blowing. Large-scale, reliable generators like nuclear and hydro are still vital to maintaining the base load and frequency required for a healthy grid – perhaps those are the areas that could benefit from strategic subsidies, ensuring a smooth transition to a clean energy future. What do you think?)

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.