Charleston Leader

U.S. Senator Shelley Moore Capito and a group of her Senate Republican colleagues have introduced legislation aimed at putting an end to federal electric vehicle and charging stations tax credits. The bill, known as the Eliminating Lavish Incentives to Electric (ELITE) Vehicles Act, is spearheaded by U.S. Senator John Barrasso.

Senator Capito expressed her stance on the issue, stating, "There is no reason that U.S. taxpayers should be bankrolling luxury electric vehicle purchases for wealthy individuals or foreign entities. This commonsense legislation dismantles loopholes that are artificially supporting the electric vehicle industry and sidestepping tax credit guidelines at the expense of American citizens. I’m proud to join my colleagues and introduce this legislation to remove the Biden administration’s misguided influence on the expensive electric vehicle industry."

The bill specifically targets various aspects of electric vehicle tax credits. It repeals the $7,500 tax credit for new electric vehicles, 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. The legislation also aims to prevent China from exploiting loopholes to access U.S. tax credits associated with electric vehicles.

In addition to Senators Capito and Barrasso, the bill is co-sponsored by several other Republican senators, including Mike Braun, Tom Cotton, Kevin Cramer, and others.

The full text of the bill can be accessed for further details on the proposed changes regarding electric vehicle tax credits and incentives.