Republicans gear up to end Biden EV tax credit that ‘ran up the bill’ on Americans
House Republicans are making a move to repeal the “climate-crazed” Biden administration’s tax credit for electric vehicles (EVs) that has cost the American people billions of dollars. Rep. Jodey Arrington, R-Texas, is introducing the Eliminating Lavish Incentives to Electric Vehicles Act, a bill that aims to eliminate the tax credit for new and used EVs and cut down on what he calls “woke and wasteful spending.”
“Under President Biden and the most climate-crazed administration in our country’s history, Democrats have burdened the American people with billions of dollars in tax subsidies for expensive electric vehicles,” Arrington said in a statement to Fox News Digital. The tax credit, implemented under the Inflation Reduction Act, provided up to $7,500 for the purchase of EVs in an effort to promote greener alternatives.
However, with former President Donald Trump reversing Biden’s green energy policies, the Republican-led Congress is now pushing to end the use of taxpayer dollars for EV purchases. Arrington’s bill aims to stop taxpayer money from subsidizing the purchase of luxury electric vehicles and close the loophole that allows individuals to get a tax credit for leasing an EV.
“I will continue to work towards repealing Green New Deal climate handouts and other wasteful spending programs while we restore fiscal responsibility, reignite prosperity, and Make America Great Again,” Arrington added. The bill, supported by members of the Ways and Means Committee, aligns with Trump’s recent executive order ending Biden’s mandate for 50% of all new car sales to be EVs by 2030.
Tim Stewart, president of the U.S. Oil & Gas Association, suggested that the elimination of the EV tax credit could be a relief for automotive groups and consumers. “Losing $70,000 on an EV is not a sustainable business model, and U.S. automakers are aware of that,” Stewart said. “The EV tax credit was the only way to entice consumers to purchase something they didn’t really want, but felt pressured to buy by the Biden administration.”
Tesla CEO Elon Musk, who is leading Trump’s Department of Government Efficiency, has also voiced support for getting rid of the tax credit. Musk believes that removing the subsidies will benefit companies like Tesla. Analysts have suggested that financially stable companies like Tesla could thrive without the tax credit, while smaller companies that rely on it for consumer affordability may face challenges.
In conclusion, the push to repeal the EV tax credit is gaining momentum among House Republicans as they aim to cut down on wasteful spending and promote fiscal responsibility. The move aligns with Trump’s efforts to roll back Biden’s green energy policies and could have significant implications for the electric vehicle industry.
