A massive GOP tax-reform bill would end a $7,500 credit for the purchase of electric vehicles and overhaul other energy-related provisions within the tax code.
The 429-page bill would repeal the electric vehicle tax credit, which supporters have credited with reducing the price of emission-free cars for consumers and helping the burgeoning American electric vehicle industry grow.
Advocates have ramped up lobbying efforts to save the credit, which has benefited electric vehicle manufactures like Tesla. The credit is limited at the first 200,000 electric vehicles sold by each manufacturer, but no one has yet hit that cap.
“Electrification for vehicles is extremely important for the future of the auto industry, particularly given the fact that as we move towards autonomous, self-driving vehicles, those vehicles will be powered by electric,” said Sen. Gary PetersGary PetersHillicon Valley — Presented by Connected Commerce Council — Incident reporting language left out of package Language requiring companies to report cyberattacks left out of defense bill Five ways Senate could change Biden's spending plan MORE (D-Mich.), who represents America's automobile manufacturing hub, on Wednesday.
“That tax credit is really important for moving this technology forward.”
The electric vehicle credit is one of several tax breaks Republicans would end as a way to help pay for their bill, which aims to reduce individual brackets and cut rates for businesses.
The legislation also reforms several energy-related tax credits.
It would repeal an inflation increase for renewable energy production tax credits, a move that would increase taxes for power sources like wind, solar, biomass, geothermal, hydropower and others. That provision would raise $12.3 billion in new revenue over ten years.
The bill also aligns the expiration date for investment tax credits affecting the renewables industry and extends a tax credit for residential energy efficiency programs. The two proposals would cost the government a combined $2.3 billion over a decade.
Republicans also seek to end two small tax credits for the oil industry, reducing government revenue slightly, and extend a nuclear industry production tax credit to newly built power plants beginning in 2021.
-Melanie Zanona contributed.